A solution to economic capital models

05 September 2018

A comprehensive ECM solution must be user-friendly, flexible, and adaptable, providing all the tools needed for pricing, portfolio modelling, reserve analysis and predictive modelling.

Insurers compete in a highly challenging environment with excess capital, lacklustre pricing, and changing inflation and interest rate expectations.

The economic capital models they use should be comprehensive, flexible, and create tangible competitive advantages.

It is no longer enough for models to generate stochastic outputs conforming to various scenarios and structures.

A true ECM solution must differentiate its users by identifying and optimising strategic growth and expansion opportunities while maintaining appropriate risk capital levels, and proactively identifying efficiencies unique to every situation.

What’s more, since the widespread implementation of Solvency II in Europe and beyond, and the introduction of the Own Risk and Solvency Assessment (ORSA) framework in the US, most carriers must continuously optimise economic capital pursuant to regulation if they’re to continue as going concerns.

ECM techniques have traditionally involved generating complex scenarios insurers can use to produce different modelled outcomes with varied, chosen parameters.

This has served the sector reasonably well for the last 20 years, but the world is changing quickly.

For one thing, those with insights into big data can take control of their portfolios and optimise their growth trajectories. Such capabilities can be built into a comprehensive ECM solution, along with cyber modelling or terrorism capabilities, in addition to property, flood and casualty.

JLT Re’s new global ECM platform

JLT Re has responded to its clients’ need for a new generation of ECM tool-suite by developing a bespoke and adaptable proprietary solution.

ANSER (ANalytical Software for the Evaluation of Risk) is built on a global platform that’s designed from the ground up for individual clients wherever they are based, providing the specific modules they need.

These can include Solvency II, an economic scenario generator, rating agency modules, regional regulatory modules (eg, PRA, OFSI and ORSA), a franchise value framework, a strategic technical expansion module (STEM), and IFRS 17, among many rel="noopener noreferrer" others.

ANSER is a comprehensive ECM solution. It is user-friendly, flexible, and adaptable, providing all the tools needed for pricing, portfolio modelling, reserve analysis and predictive modelling.

Most importantly, it is custom-built and tailored to individual clients’ needs, providing bespoke analytical insights and competitive advantages.


Please contact David Flandro on +44 (0)20 7466 1311 or david.flandro@jltre.com

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