Automating and Streamlining: Enhancing the Bonus Rate Algorithm Process

• The client’s current process for modelling their bonus algorithm
  used in the liability calculations relied on Excel and manual
  procedures.
• This approach required multiple iterations, making it time consuming
  and resource-intensive.
• MBE was engaged to investigate whether the process could be
  automated and incorporated into the client’s current modelling
  process and environment.

Discovery

• Fully understand the client’s existing bonus rate algorithm process
  and determine whether it could be automated and seamlessly
  incorporated into the existing modelling environment.

Activities

• Introduced an additional library into the existing model to fully
  incorporate the current Excel process.
• Updated the model to support this integration, enabling the entire
  workflow within a single environment.
• Streamlined the process by adding multiple user-configuration
  options, allowing for easy updates in the future or on a year-by-year
  basis.
• Enhanced the model further to significantly improve run times.

Handover

• Provided comprehensive, step-by-step guidance/documentation on
  utilising the new model functionality to ensure ease of use.
• Offered insights into potential next steps to further optimise the
  process and address more complex issues such as a future rate
  bonus algorithm.

• A unified model has eliminated the need for out-of-model
  calculations, allowing all processes to occur within a single
  environment.
• Only one run is now required to determine the bonus rates used
  in the liability calculations, significantly reducing the overall
  processing time with minimal user intervention.
• The model’s extended capability allows for flexible input
  solutions, enabling calculations to be tailored based on userdefined
  configurations.