Meta-Models and Consistency Issues
Rather than considering a “model” as a one-piece object, we can translate and adapt the concept of meta-models, commonly used in computer science, to the field of insurance management. We actually deal with a number of interconnected models. These models involve common concepts such as risk and value, assets and liabilities, reserves, management actions, etc. To avoid cacophonies (i.e. operational inefficiencies), every piece has to be placed in the right order. Depending on objectives and context, different levels of modelling will be required. Coherence in the modelling process does not mean uniformity. It is vital to understand correctly how models can effectively enhance business performance, yet not be blurred by undue complexity.