Life insurers face competing challenges — holding sufficient capital to meet long-term liabilities while optimizing returns on capital in the shorter term.
Optimizing capital usage while responding quickly to market opportunities or threats requires understanding and quantifying your risks and capital requirements.
These insights can be provided by RiskAgility EC, a technically robust and flexible framework for modeling your risk and capital requirements.
Our advanced, scalable Monte Carlo simulation engine models millions of permutations of future states of the world, letting you rapidly value assets and liabilities in each possible future state, build loss distributions and assess possible losses at any defined confidence level.
With RiskAgility EC you can
- Clarify your risk management and decision-making by measuring risk capital requirements across all businesses and risks on a consistent and diversified basis
- Improve strategic decision-making with insight on different asset allocations of risks, external stresses and detailed analyses of the capital efficiency and diversification benefits of potential mergers and acquisitions
- Identify the sources of risk and diversification with detailed and accurate capital requirement analyses on an allocated or standalone basis for any lower-level groupings of assets, liabilities and risks
- Understand the impact of reinsurance limits, hedge strategies, asset allocations, acquisitions and divestments
- Investigate asset and liability valuations with three flexible options for revaluations: calibrating to results from existing models, directly inputting results from existing models and interpolating between them, or embedding the valuation models directly within the stochastic simulation engine
- Ensure you don’t waste existing investments in models with flexibility that allows for non-linear balance sheet movements and interaction terms between multiple risks
- Reveal risk in the tails of distributions with separate modules for reinsurance, tax and ownership
- Explore sensitivities and stress tests without needing a model recalibration with customisable What-if? Modules
- Analyze movements in capital requirements between time periods
Better monitor solvency requirements and optimize capital with RiskAgility EC
RiskAgility EC introduces another level of clarity to your solvency requirements and decision-making processes. Spend more time analyzing realistic economic capital modeling insight, rather than producing results.
By making accurate and comprehensive economic modeling quicker and easier, you can also refocus on exploring the added-value analyses the business needs to maximize returns and minimize risk on capital.
