Build Up A Company-Wide Picture Of Your Liabilities
Understanding the amount of diversification in your business is crucial for your financial health. The innovative MPTF (Multiple Probalistic Trend Family) module allows you to quantify and model the correlations between lines of business, layers or segments using multiple triangle models. This information is critical to:
Dynamic Financial Analysis. Assess and quantify the degree of diversification between lines of business, segments and layers and allocate capital accordingly. See Case Study 1 for an example. Pricing The amount of diversification in your business is crucial for deciding on the margin required for each line. Optimal Outward Reinsurance Design an optimal outward reinsurance program that ensures that the coefficient of variation of net reserves is lower than that of gross reserves. Evaluating mergers with other companies When setting a price for a merger, you need to know if the other company's business is highly correlated with yours. The amount of diversification your company will gain will influence how much you should be prepared to pay. Risk for Reinsurers Understanding the correlations between business already on your books and potential new business will allow you to properly assess the risks you are taking on.	Full Diversification - assuming no correlation
	Actual Diversification - using calculated correlation

 

Communicate The Information Throughout The Company
The assumptions you have made for the future are explicit in your models and forecasts, so it is easy to communicate and discuss the basis of your projections. All this information can be contained in a centrally accessible database, allowing rapid communication between different parts of the company, and with auditors. The pictorial representation of a model as four line graphs makes it easy to explain and understand.
The open interface (COM) allows you to exchange data between other corporate databases and ICRFS-PLUS™ databases.