Challenge: The client needed SOX controls for their back end valuation process. Several actuaries created back end spreadsheets that did not have controls and were not consistent. As a result, staff training and turnover was difficult and time consuming. Also, the valuation actuary struggled to become comfortable with each individuals spreadsheet process since they were all independent.

Solution: Salt Solutions delivered a custom-configured relational database system to replace the existing spreadsheet process. The solution provided the client with the accuracy, efficiency, and control required along with an intuitive user interface and a clear audit trail to satisfy current and future regulatory demands.

Results: The back end valuation process was successfully automated for the client, enabling the actuarial staff to invest more time in analysis instead of toiling with the mechanics of producing the results. All staff members used the same process making it easier to transition staff.

Challenge: The client needed to consolidate their DAC calculation for fixed and variable annuities. Their current process involved running many macros and linked spreadsheets. The fixed and variable spreadsheet processes were very different.

Solution: Salt Solutions delivered a custom-configured, role-focused relational database system to replace the existing spreadsheet process. The solution provided the client with the sophisticated formula calculations to reproduce or improve upon their DAC calculation. Input data was provided from modeling, accounting, and experience studies. Different roles are assigned based upon administrative, read/write, or read-only access.

Results: The back end modeling process is currently in the final stages of development for the client. We estimate that the processing time will be reduced to 1/3 or 1/2 of the previous processing time. Controls are being implemented to meet SOX compliance. The fixed and variable formulas are now in sync and combined. Staff transition has begun with new actuaries replacing the actuaries that were involved in the initial implementation. The new platform provides a systematic and structured process for new staff to be trained.

Challenge: The client needed a production system to calculate commissions on a daily basis based upon a complicated commission schedule.

Solution: Salt Solutions delivered a system that automated the commission calculation. Formulas for the commission calculation were parameters into the system. Thus, as the commission schedule changed, the user could modify the parameters without requiring any programming change.

Results: Commissions are calculated on a daily basis in production mode. The client has not had a need to require Salt to modify the system since it’s installation in 2011.