Reinsurance System Development
Tools to price and manage risk are at the core of successful (re)insurance businesses. The ability to understand how a new deal impacts an existing book of business both from a risk and capital management perspective is a prerequisite to making the right pricing decision. Being able to interactively adjust layer terms and generate a new price while on the phone with a broker can help make the difference between being a lead market and not getting called at all.
Such systems are notoriously time consuming to build from scratch taking upwards of 6 years to reach maturity. This is mostly due to the enormous complexity involved, the lack of experience in building similar applications and the many wrong paths that are followed and must be backtracked. Engaging Treefrog at the beginning of such a project cuts development time by several fold. We have built many such systems before for various clients and will help you stay on the right path.
Portfolio Management And Pricing Tools
Portfolio management systems are used to assess, quantify and price risk. These enterprise systems combine vendor model science, business process and intuition, advanced reporting capabilities and rapid response time into a seamless application that enables a business to keep a firm grasp on its risk exposure. A well built system will serve as the backbone of an organization’s underwriting effort by providing deep insight into the marginal impact of deals on their existing portfolio while organizing and monitoring all the ancillary efforts leading up to contract binding.
Proprietary Model Development
Although several vendor models are available to assess the most common of risks, sometimes the customer needs greater insight. We have built everything from simple spreadsheets running parametric pricing to complex coastal flooding models running at 10 meter resolution. Customers frequently integrate proprietary models with risk portfolio management applications to produce a powerful underwriting platform.
Vendor Model Integration/Automation and Blending
The leading three vendor models are typically used to price a number of different risk scenarios. We frequently work with these applications, understand their internal data structures and are schooled at extracting raw data from these system for further manipulation. Secondary uncertainty handling and model automation though API’s ensures the process of analysis focuses on anomaly detection rather than error-prone data manipulation and duplication.
For those customers that analyze their risks in several vendor models, we can help them blend those results into a combined view. This process can be straight forward in the case of approximations, or very involved in the case of matching individual events between models. We have experience in both extremes and a number of approaches of intermediate complexity.
Cat Bond Management Tools
Cat bonds and ILW’s are increasingly the goto vehicle for investors interested in non-market-correlated investment vehicles. We built Cat bond management tools which track security prices over time, facilitate what-if scenarios and allow construction of active portfolios. Integration of these systems with existing risk and portfolio management applications is also a common requirement.
Complex Financial Calculators
Some business have relatively straight forward business models that are easy to price. Existing GL toolsets and even simple spreadsheets are enough to meet their needs. In other cases there are complex partnership and management arrangements which are structurally complicated and require automation. Subsequently the results of these calculations can be automatically sent to a GL for further processing and rollup.