At its best, modelling software can offer insurers a glimpse of the future and the ability to side-step potential pitfalls. Intelligent Insurer spoke to Richard Urbach at Conning about how the industry can benefit from this kind of technology.
“Any company, whether an insurer or not, must design a risk-reward profile it is comfortable with. This should be within the bounds of its risk tolerance and include both the company’s own risk appetite and the need to comply with regulatory requirements.”
This is the opinion of Richard Urbach, managing director of quantitative finance at Conning. He believes insurers must grasp the importance of modelling to help them in developing an effective asset liability management (ALM) programme.
“Risk-reward profiles are developed from business decisions that the company makes. These will include decisions on the liability side through its insurance arm, and also the risks it takes on the asset side,” he says.
Reinsurance, Insurance, Capital management, Conning, Investment services, Asset management, Solvency II