Benefits
Risk and Economic Capital Management for Insurance meets the diverse requirements of asset managers, actuaries and risk officers who require an accurate, real-time view of risk in support of intelligent risk taking and business growth.
Increases investment returns
The solution is designed to help risk managers deliver more informed, proactive business decisions that mitigate unexpected losses and maximize returns. By using scenarios as the basis for risk analysis, Risk and Economic Capital for Insurance helps insurance companies obtain an integrated, consistent, forward-looking picture of all sources of risk in order to develop more rewarding investment strategies.
Enables faster access to risk analytics
Using a consistent and asset-neutral risk methodology, firms are able to dynamically identify concentrations of risk categorized by risk factor, strategy and portfolio grouping. Firms may also view information at the enterprise level or at the position level, and use trend analyses to highlight strategy drift, historical limit breach and overall risk profile over time.
Enables interactive what-if trade tests
The what-if capabilities allow portfolio managers to interactively see the impact of hypothetical trades. The new portfolios can be saved, tested, and analyzed under a wide range of economic scenarios. The quick response times allow users to easily test many alternatives prior to executing a new trade.
Simplifies testing of alternative hedging strategies
The what-if capabilities allow risk managers to view the impact of hypothetical hedging strategies. The hedging strategies can be applied at the portfolio level or at an aggregated level and analyzed under a wide range of economic scenarios, allowing the user to evaluate the effectiveness of alternative strategies.
Reduces total cost of ownership
The solution leverages a common software architecture across both the front and the middle office. This integrated platform uses proven data integration and instrument modeling techniques, which can reduce data acquisition costs, implementation time, and overall system support costs.
Comprehensive asset coverage
Risk and Economic Capital for Insurance supports over 400 financial products across more than 20 geographic markets spanning fixed income, foreign exchange, equity, credit, energy, commodity, and derivatives markets. With an asset coverage library that is constantly being expanded, the solution provides firms with the means to understand the source of risk in a portfolio, including breakdowns by risk factor, virtual group, and asset type.
Open architecture
In addition to the replicated portfolio approach, there are several other methods for integrating liabilities and assets. Third-party liability models can be linked into the system and third-party scenario based liability projection systems cashflows can be imported. Simulation results can then be written out and aggregated with asset simulation results in the risk dashboard.
Delivery options
Risk and Economic Capital for Insurance is available as an in-house installation or as an online, subscription-based managed service. These flexible deployment options are designed to meet a firm's unique business requirements.
Related Downloads
Algo Risk for Insurance Fact Sheet
Manage interest rate risk and credit risk, and develop hedging strategies.
Related Information
Life & Pensions Awards
Tom Wilson of ING brings in central standardized replicating portfolio across 30 plus countries