- Short-term insurance
- Risk Monitor Computer Model
1. Short-term insurance
The Risk Monitor Group offers wide-ranging
short-term insurance and reinsurance solutions. These include
technical rating and reserving, general consulting services
and the Risk Monitor Computer Model.
Rating is the process of determining the price
at which a risk-taking entity (like a short-term insurance company)
is prepared to accept a risk as well as the setting of the conditions
on which the risk is accepted. Technical rating is the process of
building statistical/actuarial models for risks utilizing a data
set as input. Data sets are often incomplete and flawed with inconsistencies.
Our experience of dealing with these inaccuracies allows us to provide
our clients with innovative and practical solutions.
We also perform stochastic reserving for our short-term
insurance clients that allow them to have more confidence in the
provisions they keep for their future liabilities. Instead of having
one point estimate of the average size of future liabilities, a
range of potential outcomes for the claims run-off are illustrated.
General consulting services include product development,
portfolio and expense analysis, reinsurance consulting and strategic
consulting. We aim not only to quantify the problems of our clients,
but also to solve them resourcefully in a cost-effective way.
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2. Risk Monitor Computer Model
The Risk Monitor computer model is a risk
simulation engine and monitoring system developed specifically
for short-term insurers and reinsurers. By simulating risk
events on an individual risk unit level (e.g. a house of a
policyholder) and consequent cash flow modeling, capabilities
of the model include:
- Early warning underwriting system that allows the insurer
to see changes in risk in parts of the portfolio immediately.
This in turn allows timely action to be taken;
- Dynamic reserving system whereby provisions can be monitored
and updated on a monthly basis;
- Optimization of reinsurance structures;
- Optimization of capital allocation between lines of business;
and
- Asset liability modeling and determination of appropriate
asset allocation strategies.
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