Some sectors within financial services, esp. insurance, escaped the worst of the financial crisis that hit banking from 2007-09 – But was it merely a chance?
- Do you really understand how each product in your portfolio affects your capital levels?
- What about correlations between risk drivers affecting your business?
- What are your top five risk drivers?
- Do you get daily reports on how your portfolio is affected by material risk drivers?
Why should you care about capital modeling?
- Competitive pressure from international, trans-national players
- Pricing efficiencies getting higher – margins are shrinking so the need is to squeeze out every bit from risks. Minor mispricing could
- Scenario planning – the more the better. Would you have a few hundred at one level in the aggregation structure, or millions at each level?
- With entry of foreign players, policy holders will demand higher returns. Those that can price risk better gain market share
The business benefits of Spotfire Analytics in capital modeling and risk aggregation
- Our platform adapts to your existing model infrastructure
- It seamlessly ties in all the requisite steps in capital modeling, i.e. risk driver simulation, loss function derivation, risk aggregation and capital analysis
- Provides a sophisticated analytics to non-modelers
- Allows models to be re-executed by end-users