Analysis of claims histories reduces modified insurance structures to 'as-if' calculations.
To understand the impact of changed risk transfer structures (retentions, new insurance
products, Stop Loss cover, Multiline/Multiyear concepts), we need to measure the volatility
of the client's individual risks.
Using Monte Carlo simulations, we can evaluate the effect of any claims process through
its specific distribution curve. This allows us to systematically compare the chances and
risks of alternative insurance structures.
Using so-called 'Value-at-Risk' (VaR) analyses, uniform and consistent risk decisions
can be made independently of the underlying circumstances. VaR is the maximum
loss with a given probability defined as the confidence level. A typical question could be
- what is the budget for the self-insured claims, providing it is not exceeded by the occurring
claims with a probability of 99%?
Whether it is a question of the optimal retention level or the ruin risk of a Captive company,
our experts provide simulation models for the individual needs of clients. We use actuarial
studies to determine the probability distributions of individual risks and show the volatility of
the future results of insurance programs. We also derive the central risk drivers of a given risk
portfolio from sensitivity analyses.
Overall, the Riskeeper team provide the necessary instruments and techniques,
using random based processes, to calculate the objective and fair costs of retaining or