Next generation analytics and technology offer the way forward for insurance professionals to meet the increased demands on the sector including the low-yield environment, competitive pressures on insurance rates and a developing regulatory landscape.
MavenBlue’s Balance Sheet Management (BSM) Tool is designed by professionals for professionals. The BSM Tool enables transparent, consolidated and in-depth analysis of the insurer’s balance sheet. Advanced parallel computing technology allows thousands of monthly scenarios to be performed simultaneously.
In a matter of minutes, all necessary insights are available to power strategic decision making. A truly holistic balance sheet overview offers users the potential to unlock the hidden value of risk mitigation and to achieve greater absolute returns.
The BSM Tool can be used as a standalone tool or as an embedded part of the internal standard risk-processes and IT environment. The software is available as a cloud, private cloud or on-premise solution.
Take a holistic approach to balance sheet management
Define, measure and manage risks now and into the future
Gain insight into the development of the Solvency II and economic ratios over time and determine the probabilities of not meeting certain threshold ratios. Mitigate risks in time if the probability of breaching certain solvency thresholds is too high.
Determine the (ruin)probabilities that the policyholders’ obligations cannot be met at all times.
Define stress scenarios and determine the consequences. Use the results to support your Own Risk Self-Assessment (ORSA) and Forward Looking Assessment of Own Risk (FLAOR).
Define, test and optimize strategies
Use your current financial figures to quantify and clarify the expected future development of your balance sheet and solvency positions.
Experiment with strategies and discover what steering variables are best suited to satisfy Solvency II and economic objectives.
Determine the optimal current and future interest rate hedging policy.
Find out what risk mitigating strategies are most efficient.
Improve your reinsurance program, capitalization, longevity and mass lapse exposure.
Define, test and optimize asset allocation strategies
Experiment with asset allocation strategies and determine the optimal current and future asset allocation.
Evaluate the impact of product portfolio changes
Visualize the long term impact of certain pricing policies.
Determine the optimal diversification between products.
Calculate the long-term profitability of products in many real-world scenarios. Assess whether your product generates enough expected return on required capital for its full duration.
Determine the impact of new business.
Find a balance between pay-outs and capital requirements
Discover what dividend policy can be set and what amount of capital is eventually needed to meet certain return and risk appetite standards.
Analyse the long-term impact of M&A’s on your business
Explore the consequences of mergers and acquisitions from a balance sheet perspective for your full investment horizon.
A powerful and comprehensive tool accelerating key processes
- Modelling of cashflows and tax costs
- Modelling of risk margin
- Modelling of tiering
- Modelling of loss absorbing capacity of deferred tax
- Dynamic modelling of pricing new business
- Modelling of capital and dividend policy
- Unlimited amount of balance sheets
- Consolidation of balance sheets at group level
- Multiple balance sheets can be modelled at the same time
- Modelling of Solvency II yieldcurve, alternative curve and pricing curve
- Modelling of solvency capital requirements
- Modelling of Solvency II and economic ratios
- Long horizon (>= 15 years)
- Monthly instead of annual projections
- Deterministic modelling of (stress) scenarios for market and insurance risks
- Stochastic modelling of market and insurance risks
- 40+ risk drivers just for swapspread and Volatility Adjustment (VA) risk by rating and sector
- Analysis of change (AoC) of the solvency ratio
- Dynamic interest rate hedging
- Dynamic asset allocation
- Analysis of ruin probabilities
- Comparison between different projections and strategies
- Visualization of the correlation between risk drivers, balance sheet items and Solvency II measures
- Standard and user-defined reports
- Parallel processing using special purpose hardware (GPU’s)
- User-defined number of projections (500-50.000 or more)
- Less than 1 minute computing time
- Cloud, private cloud or on-premise configuration
- Interfaces for importing and exporting data
- Audit trail in key processes to support your ORSA and FLAOR
- Secured database and dataflows
- Compliance with IT requirements
MavenBlue provides a range of services to meet individual client requirements
Add tailor-made functionalities to adapt the BSM Tool to your own risk management framework. Embed specific policies, methods, metrics or financial instruments (e.g. longevity swap) in order to fully reconcile with the way you prefer to manage and measure your risks. Your custom requests are implemented with the same quality and care as the standard functionality, and are fully documented and system tested before delivery to your acceptance test environment.
The BSM Tool can interface with your current systems in different degrees of robustness, but preferably it has an interface with your administration system for investments. Also liability cashflows and other balance items need to be connected. You can connect to the standard interfaces provided by the BSM Tool or we can develop a specific interface for your databases or systems.
One more step needs to be taken care of in order to make the tool ready for your analyses. For modelling optionalities as part of the insurance policies, the BSM Tool makes use of a practical hedge portfolio. This portfolio needs to be calibrated in order to value your liabilities correctly under different scenario’s. A separate module makes sure that you can easily do this yourself. After some final tuning to your initial value and risk profile, the BSM Tool is ready to go.
Training sessions will be organised using practical examples related to your business. MavenBlue will ensure that you will be able to use all of BSM Tool’s functionalities and its many applications most effectively. Within the BSM Tool, online explanation and instruction is at your disposal.
Clients gain profound insight in their value generating potential
Clients, like a.s.r. in the Netherlands, use the BSM Tool to make projections of their balance sheets under many different scenarios and strategies.
The tool plays a key role in supporting the analyses of the development of solvency, risks and returns. Insurance companies use MavenBlue’s BSM Tool to support Orsa, Capital Management & ALM studies.
Adopting this cloud-based software, ensures consistency and promotes cooperation across the entire organisation. Thanks to the user-friendly interface and time-saving calculation speed, clients experience a better understanding of their (often) complex risk profile and value generating potential.