Stress Test & Scenario Analysis

Our Scenario Analysis Tool gives you:

  • The possibility to analyze adverse effects on your SCR, MCR, and Eligible Own Funds
  • Scenario analysis (with single or multiple scenarios), reverse stress testing, forecasting (with single or multiple scenarios) and access to specialist consultants
  • Access to 50+ default scenarios as well as the option to create custom-built scenarios
  • Full control of your data, applying the same principles of traceability and auditability as the SII Engine
  • The Scenario Analysis Tool is audit certified by Deloitte

Pre-defined Scenarios

The SII Engine Scenario Analysis Tool provides a wide range of pre-defined scenarios:

  • Assets (shocks to bonds, equities, etc. and/or ratings, countries, currency, large loss(es) 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 changes
  • 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 used for other scenario analysis tools.

  • Sensitivity analysis of your asset portfolio
  • GWP increases
  • Changes to claims incurred
  • Reinsurance counterparty assessment (default)
  • Sensitivity to additional windstorms, floods, or other CAT risks

Forecasting

The Scenario Analysis Tool also offers the ability to forecast numerous scenarios e.g. return on investments from assets, profit and growth of business, tax, dividends, or client specific scenarios.

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