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Risk and Capital Modeling for Sound Decision Making

Insurers and reinsurers have many options to choose from when deciding how to meet the greater demands placed on them internally or externally by new and ever-changing ERM, solvency and rating capital regimes.

There is no shortage of off-the-shelf software packages to drag companies over the next foreseeable compliance hurdle, at a cost. Certain companies may see advantages in cost and flexibility in building their own in-house modeling apparatus and staying independent of a licensed software platform. At Inscap we help our clients realize these advantages, building bespoke capital models tailored to meet their own unique set of requirements, which might include:

  • Assessing capital adequacy for Solvency II, demonstrating use of a qualified model with audit trail and documentation, presenting results with customized reports and interactive result graphics
  • Assessing economic capital used and corresponding ROC / EVA
  • Assessing capital adequacy for rating maintenance or improvement
  • Reserving / pricing / run-off analysis
  • Evaluating MFL scenarios, stress testing volatility and correlation assumptions, and informing a broader ERM process
  • Reinsurance program structuring and optimization
  • Optimizing capital-relief reinsurance buying
  • Integrating capital modeling into financial reporting
  • Giving finance/actuarial staff the ability to access, adapt and refine the model without significant prerequisite programming skills
  • Special risk projects (e.g. off-shore wind risk management, operational risks)