Stress Test & Scenario Analysis
Our capabilities include scenario analysis (with one or more scenarios), reverse stress test, forecasting (with one or more scenarios) and specialist consultants.
With the SII Engine Scenario Analysis Tool you will have access to +50 default scenarios and the opportunity for custom built scenarios.
The tool ensures full control of your data with the same principles of traceability and audibility as the SII Engine. The Scenario Analysis Tool is audit certified by Deloitte.
The SII Engine Scenario Analysis Tool gives you access to a range of pre-defined scenarios:
- Assets (shocks to bonds, equities, etc. and/or ratings, countries, currency, large loss etc.)
- Premiums (NL premiums increase/decrease, adding a new LoB, etc.)
- Reserves (changes to claims – and/or premium provisions, adding a new LoB, etc.)
- CAT risk (Natural CAT and Man-made CAT)
- Re-insurance counterparty rating EIOPA model parameters (shocks, correlations, etc.)
- Yield curve change
- Composite scenarios
Reverse Stress Testing
By defining the target, e.g. SII ratio, setting the target range, e.g. 100% and 150%, and the upper and lower bounds, you can use the built-in goal seek functionality to test the company’s sensitivity to market changes, business development changes, claims changes, etc. You will have access to the same range of pre-defined scenarios as the ones used for other scenario analysis.
- Sensitivity analysis on your asset portfolio
- GWP increase
- Changes to claims incurred
- Reinsurance counterparty default
- Sensitivity to additional windstorms, flood, or other CAT risk
The Scenario Analysis Tool also offers the opportunity of forecasting numerous scenarios e.g. return on investments from assets, profit and growth of business, tax, dividends, or client specific scenarios.