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6 Ways an Actuarial Consultant Can Be More Economical For Your Company

6-ways-hiring-an-actuarial-consultant-can-be-more-economical-for-your-company

December 03, 2019 / by Ben Cohen, FSA, MAAA

In today’s business climate, it’s more important than ever for companies to find ways to stand out over the competition while keeping margins low and profits high. To keep costs down, managers are asked to postpone hiring additional employees.  Meanwhile, existing employees are often expected to work extra hours and take on additional tasks. Such a setup is not sustainable from a workload or profit perspective. So how can companies get ahead?

Working with a consultant can be the best way for companies to ease some of the pressure of today’s economic climate. Let’s take a look at some of the ways consultants can be more economical for a company.

1. Keep your internal employees focused on the right tasks. When companies use consultants to do actuarial reporting, modeling, or analysis, they free up their internal employees to spend more time understanding the results of the consultants’ labor and making better strategic decisions for the company.

2. Additional perspective from a third-party source. Having historical knowledge also means that consultants can often provide more perspective than internal employees. We’ve worked with many clients and more often than not, we’ve been through a given situation before. This gives us the ability to identify potential issues and proactively course correct.

3. More historical knowledge of multiple scenarios. Not only do actuarial consultants have specialized knowledge, but they also see many different scenarios for the same type of work. This gives us the advantage of more historical knowledge for a given issue, which allows us to provide better service for our clients.

4. A specialized focus on the tasks at hand. Many of our clients have internal employees who wear many hats. This can lead to a “jack of all trades, master of none” situation where employees have knowledge on a variety of topics, but are left with no time to truly focus on any one aspect of the business. When you hire an actuarial consultant, you work with specialized professionals who spend all their time on a single piece of the business. Having mastered each associated task, we’ve become more efficient in the overall process.

5. Less time at a lower cost. Hiring a consultant doesn’t mean your company isn’t capable of doing the work on its own; instead, you’re making the choice to partner with experts who specialize in one particular aspect of your business. That means we’re faster, and in our experience, we can often complete projects in a fraction of the time with a significant reduction in the total cost. Over time, those numbers add up!

6. No employee taxes or benefits. One of the most obvious economic benefits of working with a consultant is that the client company is not on the hook for state and federal employee taxes or benefits. Using a consultant’s services on a per-project basis can also be less expensive than paying a salary for an in-house employee.

What We’ve Seen in Our Business

Over the years, we’ve helped many clients make better business decisions with our actuarial solutions, extending our services beyond financial reporting and actuarial analysis. For example, we have a client right now that has seen significant revenue growth after partnering with us. They have a limited staff and partnered with us to assist with some of their recurring actuarial work, allowing them to focus on growing their business.

Through our actuarial work, we’ve also been able to help other clients save thousands of dollars. Their businesses have benefited from having a streamlined, single go-to resource for answers.

We’d love to speak with you and see how our services can help save your company time and money! Drop us a line and set up a time for your free consultation.

 

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Topics: Insights

Ben Cohen, FSA, MAAA

Written by Ben Cohen, FSA, MAAA

Ben serves as Wakely Actuarial’s President & Consulting Actuary. He joined Wakely in 2002 and enjoys the variety in the day-to-day of his current role.

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