ORSA for Insurances
Own Risk and Solvency Assessment for Insurances
Own Risk and Solvency Assessment (ORSA) as described by recent regulatory directives poses new challenges for the risk management and the investment controlling of insurance companies.
The aim is to assess on a continuous and forward-looking basis the overall solvency needs related to the specific risk profile of the company. ORSA should be an integral part of the business strategy and connects questions on the definition of risk appetite with capital planning.
This new regulatory regime imposes new demands on risk management and strategic planning as well as on already complex business and IT processes, which need to be reliable and flexible.
Aquantec Ocean empowers insurance companies to efficiently address the challenges of ORSA.
ORSA demands multi-year analysis of the strategic plan including considerations of potential risk scenarios, forcing companies to take action on various levels:
- quantification of risk exposures and protective measures,
- definition of risk tolerance, limits, and investment products,
- translation of risk appetite into capital allocation and investment strategy,
- simulations and scenario analyses, stress tests and back tests,
- integration of risk and solvency numbers into daily processes,
- qualitative reports outlining the risk profile and the risk-management processes in place,
- quantitative reports describing the quantitative methodologies, strategies, and conclusions.
From an organizational perspective, multiple disciplines such as position keeping, accounting, investment management, risk controlling, and asset-liability management need to collaborate and to be integrated. This calls for a software solution which is capable of consolidating all aspects of the business and that offers the flexibility to support the company’s processes and governance.
Key Features of Aquantec Ocean for ORSA
Aquantec Ocean integrates in a single system all the functionality required to help insurance companies quickly and efficiently execute on the demands for the asset side of the business and provides a robust framework for dynamic analysis. Aquantec Ocean equips you with a powerful tool set to
- perform consistent valuations of all your assets including structured and illiquid positions,
- calculate accurate risk factors by employing advanced models and algorithms,
- integrate the various kinds of data for your portfolio management in one system,
- manage your portfolio conveniently and efficiently,
- gain insights of your portfolio with highly customizable views and analyses,
- compute market and book values, liquidity, and profit and loss figures,
- analyze balance-sheet information enriched with liability cashflows and replication portfolios,
- design flexible scenarios and simulations for modeling different market environments,
- assess the impact of market scenarios on market and book values at the same time,
- investigate the future performance of your investment strategy for any given scenario,
- create meaningful reports from your data and analyses employing potent pivoting capabilities.
Aquantec Ocean helps managers of insurance companies to understand the organization’s current capital and risk positions and enables accurate and transparent analysis of the possible developments over time.
The powerful and flexible data model to capture and manage the business combined with an advanced quantitative technology gives Aquantec customers the ability to quickly address the most sophisticated requirements and to meet the challenges of the ORSA process.
Efficiency, accuracy, transparency:
The modern architecture of Aquantec Ocean provides the means to chart the course for the future with confidence.