Effective management information

Document description

This paper provides a preliminary introduction to Effective Management Information (EMI) for general insurance companies. We first consider what is meant by EMI in the context of a general insurance company, and then give some examples of EMI that could be used by a direct insurance company. We have structured our thinking by considering the different users of EMI within such a company (eg Board of Directors, underwriter, claims manager etc.) followed by the functions that these users perform, and finally by the types of EMI that might help with these functions. The examples are intended as a starting point for the design of an EMI system, and the tables will require tailoring for use in practical situations. We believe that, although EMI is not strictly 'actuarial', actuaries do have a contribution to make in this field. Through their involvement with some of the key financial aspects of a company (eg reserving and pricing). they can identify the important driving forces, and hence design appropriate EMI systems. Furthermore. a genuinely effective management information system can enhance the actuary’s performance, and in turn the company’s.