Risk Aggregation Engine

Control and Agility in Reinsurance Capital Management

The Challenge in Risk Management

Economic Capital Requirements

Determine economic capital requirements for the group and by line of business with precision and confidence.

Regulatory Compliance

Meet solvency and regulatory capital model requirements while maintaining efficient capital management.

Portfolio Strategy

Support portfolio strategy and capital adequacy planning with sophisticated risk assessment tools.

Diversification Benefits

Capture dependencies between business lines and quantify diversification benefits accurately.

Benefits of the Risk Aggregation Engine

Market Leader Approach

Based on aggregation of bottom-up loss scenario sets by line of business, following industry best practices.

Flexible Framework

Universal copula framework captures dependencies via hierarchical risk aggregation tree, reflecting your specific business mix.

Enhanced Reporting

Support regulatory, rating agency, and economic risk management reporting while enabling business steering decisions.

Capital Optimization

Apply retrocession structures to optimize capital efficiency and identify concentration risks.

RAE Solution

Flexible Inputs

  • Aggregate Loss Scenario sets by LOB
  • Peril Loss Event sets by LOB
  • Hierarchical aggregate tree definition

Multiple Copula Functions

  • Normal copula
  • Student-t copula
  • Independent copula
  • Comonotonic copula

Deployment Options

  • Desktop application
  • Web-based API
  • Licensing agreement
  • No upfront development costs

Customization

  • Company-specific reporting
  • Forward-compatible updates
  • Easy testing and integration
  • Parallel implementation