Audit-Season Actuarial Staffing

Objective

The Canadian actuarial practice of a Big Four firm needed to add capacity for its audit season without adding permanent headcount. IFRS 17 had reached its first full annual reporting cycle, and the practice’s audit engagements for Canadian property and casualty and life insurers required more reserving, model review and documentation work than its own staff could absorb in the peak months.

The practice needed contractors who could start within weeks, work under its engagement managers and adjust their hours as audit demand changed. It wanted to manage the arrangements through one supplier.

Scope of Work

Contractors supported the practice’s engagement teams on:

• Reserving analysis and IBNR estimation for property and casualty audits, including setting up reserving models in the practice’s tools.
• IFRS 17 audit procedures: review of insurance contract liability models, onerous contract and measurement model testing, and audit clearance documentation.
• Regulatory capital and financial statement work for Canadian insurers, including minimum capital test review, financial statement note review and appointed actuary report peer reviews.
• Life insurance audit support on IFRS 17, asset liability management and LICAT reporting.

The practice directed the work, approved hours, and set the mix of contractors month by month.

Services Provided

Six Contractors Across the Audit Team

Graeme Group supplied six contractors: a senior US actuary holding FCAS, FSA and MAAA credentials with reinsurance reserving leadership experience; a Canada-based property and casualty actuary with IFRS 17 and reserving experience; and four offshore actuaries with property and casualty, IFRS 17 and life reporting backgrounds. All six worked concurrently at the season's peak.

Onshore and Offshore in One Team

Offshore contractors worked hours that overlapped the Canadian team's afternoon, allowing managers to review their work the same day. Onshore actuaries handled assignments requiring senior actuarial judgment and direct contact with audit clients.

Administration Through One Supplier

Graeme Group managed contracting, onboarding, contractor compliance documentation and invoicing. The monthly statement reconciled each contractor's charges to hours approved by the practice.

Adjusting Hours Through the Year

Hours were highest during first-quarter reporting and fell as audits were completed. By the fourth quarter, one contractor remained. The practice paid for the hours it required and reduced staffing as the season ended.

Deliverables

The contractors produced audit workpapers and reports within the practice's teams. Graeme Group provided:

• Six credentialed and near-credentialed actuaries with relevant property and casualty, IFRS 17 and life audit experience.
• Onshore and offshore staffing with overlapping working hours.
• Contracting, compliance, onboarding and consolidated monthly invoicing through a single supplier.
• Monthly adjustments to contractor hours based on the practice's approved requirements.

Outcome

• Team in Place by March: The first contractors started in January 2024, and all six were working by March for the peak reporting period.
• Six Contractors at Peak: Assignments covered property and casualty reserving, IFRS 17 audit and life reporting.
• Support Through Year-End: Contractor hours were adjusted to the practice's requirements throughout 2024.
• Next Season Discussed: The practice returned to discuss AXIS and IFRS 17 audit support for the following season, including onboarding timelines.