Insurance & Reinsurance

Optimizing Risk Exposure using Probabilistic Analytics

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From premium pricing to capital reserves allocation, Palisade solutions help actuaries, underwriters and other decision makers balance risk.

Whether you work at Swiss Re, a regional brokerage, a public agency, or self-insure through a captive insurer, anyone in the insurance and reinsurance sector knows that they face risks that were unheard of until recently. As an industry operating in ever-changing regulatory environments and volatile geopolitical economies, insurance bodies are exposed to a wide range of constantly-changing uncertainties that can negatively impact bottom lines and shareholder value.

Climate change is a major worry for insurers at all levels, with each year warmer and more volatile than the last. Coupled with a trend toward urbanization of coastal areas, the risks to property and human life will only increase. Cyber risk is and will continue to be a significant challenge, and one for which the industry lacks much historical data. This makes pricing cyber risk policies particularly difficult. Technological changes present another source of uncertainty, with private innovation proceeding at a pace that governments can’t match. This introduces gray areas for behavior that make it challenging to assign liability. Furthermore, the risks to financial markets remain. Shocks to financial systems from factors such as the pandemic and government policy mean insurers must be prepared for sudden and unexpected losses.
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Internal and external drivers of change mean that insurers are facing new and evolving risks. CROs are looking to new technologies to improve efficiency…or to improve the effectiveness of their risk function.”

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@RISK and DecisionTools Suite for Insurance & Reinsurance

A majority of leading companies and agencies in the insurance and reinsurance sector rely on @RISK and DecisionTools Suite software solutions to meet these challenges head-on, all from the familiar spreadsheet environment. @RISK and the DecisionTools Suite bring robust analytics such as Monte Carlo simulation, optimization, decision trees, sensitivity analysis, and predictive data analysis to Microsoft Excel. This enables users of all levels to contribute to better decision-making – with or without data, and with or without a statistics background.

How Insurance & Reinsurance Leaders Use Palisade

Capital Reserves
Probabilistically forecast future insurance claims and losses in order to determine optimal reserves levels. Perform stress testing on high-impact, low-probability events.

Products: @RISK, TopRank, RISKOptimizer, Evolver, PrecisionTree

Premium Pricing
Balance acceptable premiums with the client’s financial ability and appetite to retain risk, and against the insurer’s needs for appropriate reserves and profitability.

Products: @RISK, TopRank, RISKOptimizer, Evolver, NeuralTools

Captive Insurance
Understand the probabilities of incurring losses and the operational risks of self-insuring. Assess the risk of allowing a third party to write business on its license in “captive cell” scenarios.

Products: @RISK, TopRank, RISKOptimizer, Evolver

Insurance Strategy
Determine optimal strategies for clients, including types and levels of coverages and appropriate deductible levels. Assess whether, when, and to what extent to use reinsurance for larger risk categories or industries.

Products: @RISK, TopRank, RISKOptimizer, Evolver, PrecisionTree

And Much More!
From return on capital to regulatory compliance and everything in between, Palisade solutions are used to address a wide range of insurance and reinsurance challenges.

Includes @RISK and all products mentioned above

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Using @RISK allows us to choose between competing opportunities. I find the graphical outputs to be the most useful feature. Being able to compose a picture showing the range of outcomes is critical to analyzing our complex models and is extremely useful in presenting to senior executives, who do not have financial backgrounds.”

Allan Smith
Financial Business Advisor, Nationwide

Customer Success Stories

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Liran Blasbalg
Actuarial Analyst, Deloitte South Africa

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@RISK includes a very useful feature called the Compound function that combines the twin uncertainties of likelihood of loss and severity of loss in a single calculation. Without @RISK we would essentially have to make use of tens of thousands of rows to run our model.

Casualty Actuary Society
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Kevin Ahlgrim
Illinois State University

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@RISK saved time and resources, especially during the model’s development... We sincerely believe that any organization truly interested in generating economic and financial scenarios should commit the resources to purchasing and understanding such a package.

Alesco Risk Management Services
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Derek Thrumble
Partner, Alesco Risk Management Services

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@RISK makes it quick and simple to run Monte Carlo simulations directly in Excel, thereby avoiding the need to build complex models with thousands of rows of data and code. As a result we can undertake complex forecasting for our clients within a realistic time-frame.

Post Danmark
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Ulrik Mester
Risk Management Consultant, Post Danmark

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The combination of our data and @RISK's technology has given us the confidence to predict exactly what risks we face, as a result of which we do not need to pay so much for our insurance.



Case Studies


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