OneMain Financial Prepares for LDTI with SLOPE

The Challenge

LDTI: Increased Responsibility

Beginning in 2023, ASU 2018-12 Targeted Improvements to the Accounting for LongDuration Contracts (LDTI) will require new calculations and additional disclosures around many existing insurance contracts. As some of OneMain’s products fall under the requirements of LDTI, their actuaries will soon be required to perform additional modeling tasks. In addition, they will need to enhance their disclosures around assumptions.

Storage and Computing Limitations

“The functionality [of our current platform] didn’t match up that well for our particular needs, and the cost was greater,” said Michael Koppen, SVP and Chief Actuary. Extra fees from their solution’s vendor to access cloud computing and storage services prompted OneMain to initiate a search for a solution provider that could support the necessary functionality, improve usability, and reasonably manage expenses.

---

“Do we even need to keep looking at the others?”

OneMain Solutions, during their pilot

---

The Solution

Efficiency and Efficacy

OneMain conducted a search across all the familiar names within the landscape of actuarial cash flow software. They had to prioritize multiple aspects for the decision. One was ensuring that cash flows were the focus and accurately projected from first principles, as opposed to being retro-fit to the existing valuation architecture. With this in mind, the field was narrowed to three main options. SLOPE made the final cut by being a cash flow projection system from the start, as well as being easy to use and easy to work with.

Next, OneMain initiated similar pilot projects with all three finalists to evaluate them. Other options that required on-premise architecture took as long as three months just setting up the environment to begin testing a platform. SLOPE, being cloud-native, was set up instantly and OneMain completed their trial within thirty days.

The Results

Intuitive Platform

“Our users found themselves saying, ‘Wow, this feels very intuitive,'” noted Koppen. When focused on ease of use, SLOPE stood out in allowing OneMain’s actuaries to get results they wanted without a lot of headache. “OneMain’s actuaries can model the products that have unique features without doing a lot of work. They can perform their actuarial functions without standing on our heads to find a way around system limitations.”

Koppen pointed out that they really wanted to answer two main questions during the trial. “Could we confirm for ourselves that everything ran the way we wanted it to?” And “Do we have enough intermediate information to prove to our audiences that it’s right?”

When those answers came back Yes and Yes, OneMain knew they were on the right path.

No IT Headaches

In addition, as price is always a dimension of consideration, SLOPE came in on the “less expensive” side. The all-in-one cloud-based platform (covering computation, data storage, uptime, and backups) eliminates OneMain’s need to purchase and maintain separate cloud services for their own use.

An additional benefit of the fully hosted platform is that OneMain’s actuaries are now able to concentrate on actuarial model building and results evaluation, rather than dealing with distractions from IT-related issues.

Finally, OneMain appreciated the flexibility of the SLOPE system. Now, OneMain’s actuaries can model the products that have unique features without doing a lot of work.