Insureware is the inventor and disseminator of a new paradigm in long tail liability modelling that facilitates the scientific management of risk and capital. It was founded by Prof. Ben Zehnwirth in 1988 and provides unparalleled eConsulting and software solution services to its global client base.

Insureware creates unique collaborative partnerships with each client. The partnership facilitates the growth of incomparable knowledge, benefits and applications for each client, as well as enabling Insureware's high calibre R&D team to develop new innovative benefits and applications that are incorporated into upgrades of its software solutions.

ICRFS-Plus™, a long tail liability Enterprise Risk Management System, is the key to a new innovative paradigm for measuring and managing long tail liability risks in an integrated relational database.

It is the first and leading probabilistic software for loss reserving; with applications to pricing, risk-based capital calculations, creative reinsurance solutions, and modelling of relationships between lines of business, segments and layers, that is critical to Economic Capital determination, Capital Allocation, Dynamic Financial Analysis (DFA) and supporting Solvency II and IFRS metrics.

The modelling frameworks within ICRFS-Plus™ enable the user to build models that represent the true volatility in the company's long tail lines of business and quantify the relationships between them.

ICRFS-Plus™ is the only long tail liability Enterprise Risk Management system in the world that affords the unique benefits of efficiency, flexibility and innovation in supporting Solvency II and IFRS requirements. ICRFS-Plus™ 10.5 includes Insureware's unique solution to the one-year risk horizon SCR, Technical Provisions (Fair Value of Liabilities) and Market Value Margins (Risk Margins) for the aggregate of multiple LOBs. The solution is not circular and is mathematically tractable contrary to other views.

A set of demonstration videos explaining and illustrating the solution are available here.

A real life example involving six LOBs is studied and it is shown that for the aggregate of the six LOBs,

      Technical Provisions + SCR = Undiscounted Mean Reserves,

assuming a risk free rate of 4% and a spread of 6%. This is due to risk diversification credit of writing the six LOBs that are uncorrelated.

This result is far from true for the most volatile LOB4 were it the only one written!

ICRFS-Plus™ PTF and MPTF models are internal models tailored to the data. Internal models are critical for Solvency II (see this discussion on solvency II). A few quotes are given below:

"The idea of the framework is that everybody should be using an internal model in the end"

"Most firms that do not get internal model approval will find themselves at a massive competitive disadvantage"

"Isn't it almost axiomatic that reinsurer should adopt the internal model because of the nature of its business"

For the purpose of Solvency II, the relational database facilitates the understanding of the significant long tail liability risks of the enterprise in a quantifiable and integrated manner. It is effortless to navigate the database so that each actuary has access to the same information with just a few mouse clicks.

ICRFS-Plus™ COM Automation facilitates effortless and seamless importation of data from any other database. The A.M. Best & NAIC Schedule P CD can be converted into an ICRFS-Plus™ database - a wealth of information in a few mouse clicks that cannot be obtained in any other way. Now, with ICRFS-Plus™, it is quick and easy to create and access that information.

Compare your company to other companies and the industry and gain a competitive advantage.

New: Using ICRFS-Plus™ COM, it is now possible to import S&P SynThesys Non-Life database into an ICRFS-Plus™ database for effortless company comparisons using just a few mouse clicks.

Answer questions like (from A.M.Best Annual Supplemental Rating Questionnaire):

• Does your rating unit estimate the potential impact of future changes in general inflation on its current net loss reserve position?
• Describe 3 potential future general inflation scenarios that your rating unit has identified as stress scenarios for the rating unit. In addition, please provide the estimated overall net impact on the current net loss reserve position and the rating unit's planned mitigation strategy associated with each stress scenario, if any:

These two questions can only be answered effectively and efficiently using the Probabilistic Trend Family (PTF) and the Multiple PTF (MPTF) modelling frameworks of ICRFS-Plus™.
All the points are summarised here.

Click here for more information on COM Automation.

ICRFS-ELRF™ is a software package that incorporates standard actuarial methods including Mack, Murphy and much more. Weighted average link ratios are formalised as regression estimators. These are also extended to include an intercept term and a constant accident period trend for each development period.

The resultant benefits include forecast standard errors (instead of just a point value) and the ability to test whether the assumptions made by the model are carried by the data.

We also offer a Trial/Student Version for FREE of this product with limited database capability and no COM facility but otherwise fully featured. Click here for further details.