Beyond modelling: a new era in risk management

Reshaping risk management with Allphin’s exposure management tools.

When analysing risk exposure, precision and speed are key. In such a high-stakes industry, insurers and reinsurers alike demand results.

Laurent de la Porte (pictured), chief executive officer of Allphins, spoke to Intelligent Insurer to explain how exposure management tools, combined with probabilistic modelling, are transforming decision-making processes.

He emphasised the importance of user-friendly, transparent solutions that empower professionals at all levels to handle complex datasets with ease.

Allphins covers numerous lines of business, including more than half of all energy reinsurers and has a fast-growing footprint in terrorism. 

The company’s latest product release focuses on the property sector – for good reason.

“Property insurance involves vast amounts of data,” explained de la Porte. “For reinsurers, this volume is multiplied by the number of cedents they work with.

“It means analysing millions of addresses, from private homes to industrial sites. The only effective way to manage this is to approach the data with the right focus.”

Traditionally, reinsurers have relied on probabilistic modelling, which de la Porte describes as a cornerstone of the industry.

“If someone insures properties in Florida, for instance, modelling provides the expected loss as a single figure,” he explained. “But exposure management adds another layer.

“It clarifies where the exposures are – highlighting, for instance, differences between Miami and Tampa in terms of building age or proximity to the shore.

“This complements modelling by painting a detailed picture of the risk landscape.”

Designed for reinsurers

Allphins, a Paris-based technology and data analytics company, has developed tools specifically for reinsurers rather than adapting solutions designed for insurers.

This targeted approach allows the platform to address reinsurers’ unique challenges and provide precise answers. 

“With Allphins, users can upload their portfolios, digitise them within hours, and begin their analysis immediately,” de la Porte says.

The platform enables data visualisation on maps, year-over-year exposure comparisons, and detailed analysis based on criteria such as country, building type or proximity to the shore.

While non-experts can extract insights quickly, advanced users are able to explore intricate scenarios.

“We’ve ensured that even senior managers, who might only use the platform occasionally, can get answers with just a few clicks.” 

Efficiency in decision-making

Reinsurers often operate under significant time constraints, particularly during natural disasters.

According to de la Porte, time savings are one of the main reasons clients choose Allphins. “Creating a basic report – such as hurricane exposure by state – can be cumbersome and time-consuming without the right tools.

With Allphins, these tasks are streamlined, saving valuable time.”

However, the advantages go beyond speed. “The real value lies in the quality of decisions made with this time saved,” he said.

“Quick access to accurate data enables meaningful discussions with brokers and clients, leading to better underwriting decisions, strategic planning and responses to events.”

During catastrophic events, the platform’s real-time capabilities become invaluable. 

“In the past, reinsurers had to estimate exposure by aggregating data from affected areas – a method that was slow and imprecise,” de la Porte explained.

“With Allphins, event shapes, such as hurricane paths, are updated in real time. Users can overlay these shapes on heat maps of their exposure to gain an immediate sense of the impact.”

This functionality enables clients to build an initial view of exposure within an hour and refine their analysis by incorporating factors such as building age or wind speed.

These insights are crucial for client discussions and capital management during crises.

Simplicity and transparency

The platform’s accessibility is another key feature. “Allphins was designed with simplicity and transparency in mind,” de la Porte said.

“Even senior managers, who may use the platform only occasionally, can obtain answers with just a few clicks.” 

For more detailed analyses, low-code options allow users to interrogate data without requiring extensive technical expertise.

This usability fosters collaboration across organisations. “With one platform providing a single source of truth, underwriters, analysts and managers can align their efforts,” he added.

Exposure management also supports strategic portfolio alignment. “If you aim to reduce hurricane exposure while increasing typhoon risk under certain conditions, Allphins helps ensure your decisions align with your strategy.”

Looking ahead, de la Porte envisions a transformation in the industry driven by data and technology. “Historically, reinsurers relied on limited datasets due to a lack of suitable tools.

“Today, platforms like Allphins enable exhaustive, precise analyses, leading to better-calibrated premiums and a more balanced market.”

He believes this shift will bring transparency and efficiency across the value chain. “By digitising and enriching data, reinsurers can not only avoid overestimating exposure but also enhance their decision-making processes.”

Analysing exposure doesn’t need to be complex.

“Even the most intricate datasets can be navigated with ease. It’s about switching on the light, understanding where you stand and making informed decisions. That’s the power of modern exposure management,” he concluded.

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