Ellements of Success
At Ellement, our success is built on a years of experience and skill. There’s no magic, smoke, mirrors, or special handshakes. Simply, an ability to apply what we’ve learned to the models we build, based on a solid foundation of mathematics, probability, statistics and finance. Our clients trust Ellement to manage their private and public pension and benefit programs.
While actuaries can’t predict the future, they can build models that can project the future based on the recognition of various assumptions and behaviours.
The first stage is to identify the problem and analyze it from several viewpoints, including the associated risk and the client’s overall situation. We then collect the appropriate data, and build a model that will provide a number of possible solutions, which are then presented to the client. Once an approach is selected and implemented, the experience is monitored and the model is refined.
An important part of this cycle is to revisit the original issue to determine whether the problem has been fully resolved, or if further adjustments must be made. This process occurs under the assumption that an understanding of the overall environment exists, as well as being subject to a high standard of professionalism.
The control cycle is applied to traditional areas such as health, investments, life, and pensions, but can also be used for a much wider range of challenges.
Ultimately, the success of a benefit program is measured over its lifetime, and with pension plans, this period can be 50 years or longer. By ensuring that adequate contributions, and investment income are generated, the plan is able to payout benefits and expenses. Legislation requires that the financial health of employee benefit programs be assessed, minimally every three years.
Some view these short-term financial health measurements as somewhat artificial, maintaining that they are clouded by myopic regulatory requirements and at odds with the long-term strategy. However, discipline and consistency are required in order to stay the course and reach long-term strategic goals.