Products & Solutions / Risk Management for Insurance

SAS® Risk Management for Insurance

Perform risk analysis and risk-based capital calculations for Solvency II compliance

SAS Risk Management for Insurance is a comprehensive solution for performing risk analysis and risk-based capital calculation for insurers. The solution enables life and P&C insurance companies to implement the Solvency II standard model approach for calculating risk-based capital and is built on a robust data management and reporting platform that includes an insurance-specific data model for complex risk analytics.

Benefits

  • Comply with Solvency II regulations.
  • Reduce volatility.
  • Gain a greater competitive advantage.
  • Perform more accurate risk analysis with an enterprise data warehouse.
  • Lower your total cost of ownership.

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Features

  • Firmwide Risk
  • Market Risk Management
  • P&C Underwriting Risk
  • Life Underwriting Risk
  • Risk Data Management
  • Risk Reporting

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Solvency II reports


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How SAS® Is Different

  • End-to-end functionality. SAS provides a single solution with data management capabilities, advanced analytics, reporting technologies and an integrated insurance data model that serves as a single source of information for an enterprise risk data warehouse.
  • Comprehensive data management. Data integration typically accounts for up to 80 percent of a risk management project's costs. SAS Risk Management for Insurance includes an integrated risk data warehouse that delivers consistent and accurate data, which is fundamental for a successful risk solution implementation.
  • Risk analytics. SAS' risk analysis framework provides a flexible and extendible software application that meets the evolving risk analysis needs of insurance companies with separate components for analysis of all risk types – Market, P&C Underwriting, Life Underwriting and Firmwide. Insurers can perform complex calculations to anticipate risks and initiate control measures to maintain solvency ratios that meet regulatory specifications.
  • Risk reporting. The solution includes standard and ad hoc reporting capabilities that are critical for disseminating risk information to regulators for Solvency II compliance and senior management for improved risk decision making.

Benefits

  • Comply with Solvency II regulations.
    • Calculate standard model MCR and SCR requirements.
    • Create regulatory and management reports required for Solvency II.
  • Reduce volatility.
    • Improve risk decision strategies by gaining a greater understanding of how economic factors affect your balance sheet.
    • Ensure solvency by stress testing your assets and liabilities against sudden and dramatic changes in market conditions.
  • Gain a greater competitive advantage.
    • Better allocation of risk-based capital charges enables you to lower your premium rates.
    • Enhanced credit ratings improve the availability and price of debt.
    • Obtain better investment performance by optimizing investment strategies.
    • Reallocate capital and risk capacity for current and future business opportunities as needed.
  • Perform more accurate risk analysis with an enterprise data warehouse.
    • Comprehensive data management capabilities improve data quality by eliminating or reducing data inconsistencies.
    • An insurance-specific data model serves as a single source of information.
    • Prebuilt data management capabilities enable the loading of data from the data model to the risk solutions.
  • Lower your total cost of ownership.
    • A single solution provides comprehensive features – from data integration to risk analysis to reporting.
    • The solution is flexible and extendible to meet the evolving risk analysis needs of insurance companies.
    • The solution provides flexible integration with third-party risk software.

Features

Firmwide Risk
  • Calculation of Solvency II quantitative (Pillar 1) requirements – Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR).
  • Aggregation of risk capital charges across all risk modules.
  • Calculates capital and solvency ratio.
  • Supports counterparty default risk and operational risk calculations.
  • Calculates reinsurance receivables.
Market Risk Management
  • Supports configuration of financial instruments and assets, including:
    • Bonds (fixed, variable, callable, corporate, etc.).
    • Equity – spot.
    • Derivative instruments with underlying equity, currency and bonds.
    • Credit derivatives.
    • Swaps (interest rate and currency).
    • Options on swaps, caps and floors.
    • Property.
  • Supports stress tests based on interest rates, equity, currency rates and property rates.
  • Calculates and aggregates risk capital charges.
P&C Underwriting Risk
  • Prebuilt framework for estimating loss reserves.
  • Calculates loss reserves using:
    • Link ratio.
    • Chain ladder.
    • Cape Cod.
    • Bornhuetter-Ferguson.
  • Calculates and aggregates risk capital charges.
Life Underwriting Risk
  • Valuation of life insurance liabilities using an extensive library of functions.
  • Perform stress testing based on mortality, disability, longevity, expenses and lapse rates.
  • Supports with and without profit and separate account life policies.
  • Calculates and aggregates separate risk capital charges.
Risk Data Management
  • Ability to read from and write to nearly any data on any technology platform, including Excel, Oracle, DB2, SAP and legacy systems.
  • Embedded data quality processes.
  • Extensive insurance data model.
  • Supports integration with third-party solutions.
  • User security – ability to create and amend user security for access, authentication and authorization.
  • Prebuilt data management capabilities to extract, transform and load (ETL) data from DDS to solution data mart.
Risk Reporting
  • Repository of prebuilt reports, including:
    • Asset and liability valuation.
    • Valuation assumption.
    • Capital adequacy.
    • Stress testing analysis.
  • Intuitive Web-based query and reporting tool for business users to create, view and share ad hoc reports.

Screenshots

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Data management capabilities

Data quality tools provide the ability to eliminate or reduce data inconsistencies

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Risk analysis configuration

An intuitive interface lets users easily configure insurance products and parameters for risk analysis.

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Risk reporting

A web-based risk analysis and reporting user interface allows risk capabilities and reporting to be distributed efficiently across the organization.

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Solvency II reports

SAS Risk Management for Insurance includes prebuilt reporting templates.

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OLAP capabilities

OLAP capabilities let business users look at data from multiple views with increasing levels of detail.

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System Requirements

Client environment
  • Microsoft Windows (x86-32): Windows XP Professional, Windows Server 2003 family, Windows Server 2008 family, Windows Vista*, Windows 7**
  • Microsoft  Windows (x64): Windows XP Professional for x64, Windows Server 2003 for x64, Windows Server 2008 for x64, Windows Vista* for x64, Windows 7**  for x64
Midtier environment
  • HP-UX Itanium: HP-UX 11iv2 (11.23), 11iv3 (11.31)
  • IBM AIX: 5.3, 6.1 and 7.1 on POWER architectures
  • Linux for x64 (EM64T/AMD64): RHEL 4, 5 and 6, SuSE SLES 9, 10 and 11
  • Microsoft Windows (x86-32): Windows XP Professional, Windows Server 2003 family, Windows Server 2008 family, Windows Vista*, Windows 7**
  • Microsoft Windows on x64 (EM64T/AMD64): Windows XP Professional for x64, Windows Server 2003 for x64, Windows Server 2008 for x64, Windows Vista* for x64, Windows 7**  for x64
  • Solaris on SPARC: Version 9, 10
  • Solaris on x64: Version 10
Server environment
  • HP-UX Itanium: HP-UX 11iv2 (11.23), 11iv3 (11.31)
  • HP-UX PA-RISC: HP-UX 11iv2  (11.23), 11iv3 (11.31)
  • IBM AIX: 5.3, 6.1 and 7.1 on POWER architectures
  • Linux for x86 (x86-32): RHEL 4, 5 and 6, SuSE SLES 9, 10 and 11
  • Linux for x64 (EM64T/AMD64): RHEL 4, 5 and 6, SuSE SLES 9, 10 and 11
  • Microsoft Windows (x86-32): Windows XP Professional, Windows Server 2003 family, Windows Server 2008 family, Windows Vista*, Windows 7**
  • Microsoft Windows on x64 (EM64T/AMD64): Windows XP Professional for x64, Windows Server 2003 for x64, Windows Server 2008 for x64, Windows Vista* for x64, Windows 7** for x64
  • Solaris on SPARC: Version 9, 10
  • Solaris on x64: Version 10
Supported Web browsers
  • Internet Explorer 6 on Windows XP Professional
  • Internet Explorer 7 on Windows XP Professional, Windows Server 2008 and Windows Vista*
  • Internet Explorer 8 on Windows XP Professional, Windows Vista* and Windows 7**
  • Firefox 2.0, 3.0 and 3.6 on Windows XP Professional, Windows Server 2008 and  Windows Vista*
Web tier
  • BEA WebLogic 9.2 and 10.0 on AIX, HP-UX Itanium, Solaris (SPARC and x64), Windows Server 2003, Windows Server 2008
  • IBM WebSphere 6.1 and 7 on AIX, Solaris (SPARC and x64) Windows 2003 Server, Windows Server 2008
  • JBoss EAP 4.2 and 4.3 on AIX, HP-UX Itanium, Solaris (SPARC and x64), Windows Server 2003, Windows Server 2008

*Windows Vista supported editions are: Enterprise, Business and Ultimate.
** Windows 7 supported editions are: Professional, Enterprise and Ultimate.

Ready to learn more?

Call us at 1-800-727-0025 (US and Canada) or request more information.