The Outstanding Advantages: Logical Modeling Hierarchy, Powerful, Flexible & User Friendly
US Patent No. 6,993,465 B2
Risk Modeling with Risk Explorer™
Risk Explorer™ is the most powerful and flexible Dynamic Financial Analysis software currently available. It can be quickly and easily set up for:
- Portfolio Risk Management, whether for primary insurers' business lines or for reinsurers' contracts;
- Maximizing the efficiency of ceded reinsurance or retrocession programmes, including non-traditional or finite alternatives, ceded Reinsurance Cost Allocation;
- Full financial statement modeling, evaluating volatility of financial results, such as Income, Surplus, Reserves or any other;
- Determining Economic Capital requirements, Capital Allocation and RORAC;
- Asset-Liability matching, Cash Flow analysis;
- Measuring performance of various segments of the company;
- Data interchange with other applications, such as Cat Models and Microsoft® Excel.
Risk Explorer™ is user friendly (point-and-click). Its rich functionality can be expanded using Excel models compiled into executable computer code by Translator++™ for Excel (US Patent No. 7,530,013 B2) to handle exotic finite reinsurance, assets or risks not already available as standard components.
Outstanding Advantages for Your Dynamic Financial Analysis
Analytical Power: A wide variety of built-in risk models, as well as reinsurance contract types, correlation and financial statement models allows users to build large corporate portfolios or to analyse complex reinsurance arrangements by point-and-click. The users also have the ability to include various economic models to evaluate the impact of the economic changes on their bottom line.
Speed: The state-of-the-art simulation engine runs hundreds of thousands of random scenarios for large corporate portfolios and evaluates large numbers of reinsurance alternatives faster and more efficiently than ever before.
Flexibility: No need to learn any built-in scripts or programming languages. If Risk Explorer’s powerful standard functionality does not cover your more advanced needs you can expand it by simply creating Excel models and converting them into natural machine-code extensions of Risk Explorer™.
User Friendliness: Many convenient wizards, toolbars, icons, context menus and the overall easy-to-use application structure make learning and using Risk Explorer™ an enjoyable experience. Built-in user guides and context help are available.
Integration: Handles multiple data inputs, including cat modeling packages and Microsoft® Excel. Output can be easily dovetailed into planning and corporate financial models.
Risk Evaluation: Analyse standard scenarios, create models that run deterministically or as pure simulations. Risk Explorer™ is a powerful risk pricing tool in addition to its application in the pure DFA function and for business strategy evaluation.
Risk Management: Isolate and analyse bad outcomes and adopt alternate strategies to create the optimum risk-reward trade-off.
Proven Technology: Risk Explorer™ is used intensively by a number of the world’s leading brokers, primary insurers and reinsurers. It is particularly favoured by a major finite reinsurer as a portfolio management tool.
Cost Efficiency: Risk Explorer™is easy to use with a clear, logical structure and point-and-click intuitive interface which accelerates the users’ learning curve and reduces the hidden costs associated with in-house development or the use of other, less evolved, financial modeling tools.
Dynamic Financial Analysis Software Adjusted to Your Needs
Logical Modeling Hierarchy
- Economic Framework
- Risk Sources
The economic framework of currencies, interest rate yield curves, forward exchange rates and indices sets the wider scene. Incorporate any number of currencies and any number of indices.
Parameters can be modelled with a variety of deterministic and stochastic techniques.
A powerful correlation module allows inter-relationships between any number of economic variables and risk factors.
Risk sources are added to companies and can be generated from the lowest level of detail (e.g. perils within individual cover sections on individual policies), to portfolios or subsidiaries within group structures.
Loss generation models include:
- Individual loss models
- Individual loss models
- Clash models
- Event (e.g. hurricane) models
- Assumed reinsurance models
- User defined (exotic models created in Excel and included as risk components after applying Translator++™ for Excel).
- Bond, Equity or any model investment portfolio can be included.
Powerful, Flexible & User Friendly
Model reinsurance programmes of virtually any complexity use Translator++™ for Excel to create exotic complied components, sophisticated correlation models and manage the parameter set.
Reinsurance programmes consist of a set of individual contracts. Standard reinsurance contracts are created using the point-and-click interface. The system will support any inuring path and any number of contracts. Alternative reinsurance strategies are easy to build and test. The graphic representation of the programmes provides additional insights to users.
Non-standard reinsurance, risk sources, assets or other components are built in Excel and imported into Risk Explorer™ as executable machine code components through Translator++™ for Excel. The compiled components are also available to other applications.
Managing the parameter set is critical in DFA models. Risk Explorer™ uses a highly evolved Multiple Object Browser that allows data entry directly from spreadsheets. Parameter entry and maintenance is easy.
Fast, Effective & Usable Results
Contains powerful Built-In Functionality with Multiple Applications which usually require Multiple Products:
- Full financial statements
- Comparative performance of alternative strategies
- Capital allocation and RORAC
- Data segmentation
Complete financial accounts are produced for each company in the model. Risk Explorer™ not only gives insights to your company, but to all its modeled counterparties. Risk Explorer™ lets you isolate individual scenarios, capture results for single simulations, save all simulations to external files or examine the statistical properties of any element of the model.
The comparative analysis of alternative strategies is fast and effective and can be determined at any level of data segmentation and granularity (e.g. line of business, geographical, by underwriter). In addition to Risk Explorer’s results viewer, results can be redirected to Excel or a database if required.