For insurance risk management, implement the standard model approach for calculating risk-based capital with a comprehensive solution for performing risk analysis and risk-based capital calculations. Insurance risk management is built on a robust data management and reporting platform that includes an insurance-specific data model for complex risk analysis. Every firm or business should implement their own favorable insurance risk management systems. Below are some of the most significant benefits that such a system can give you.
- Comply with Solvency II regulations. With an insurance risk management system, you can calculate standard model MCR and SCR requirements, and create regulatory and management reports required for Solvency II using a single solution that is both flexible and extendible to meet your evolving risk analysis needs.
- Gain greater competitive advantage. Employing insurance risk management allows for better allocation of risk-based capital charges so you can lower your premium rates. By optimizing your investment strategies, you can improve the performance of your investments. You can also reallocate capital and risk capacity as needed to take advantage of current and future business opportunities.
- Reduce volatility. With an insurance risk management system, you can improve risk decision strategies by gaining a greater understanding of how economic factors affect your balance sheet. You can ensure solvency by stress testing your assets and liabilities against sudden and/or dramatic changes in market conditions.
- Perform more accurate risk analysis. With an insurance risk management system, you can reduce and even eliminate data inconsistencies with comprehensive data management capabilities that improve the quality of your data. An insurance-specific data model serves as a single source of information. And pre-built data management capabilities allow the loading of data from the data model to the risk solutions.
If you are considering an insurance risk management solution, make sure that you invest in one that comes from a reputable provider.