Risk Management Solutions
Insurance Risk Management
Adopt a single, integrated framework for IFRS 17 and Solvency II compliance – and beyond.
How SAS® Supports Insurance Risk Management
A single, integrated framework for both regulatory compliance and business requirements.
While IFRS/US GAAP and Solvency II differ in the details – e.g., contract identification, level of and approach to calculations, reported measures, responsibilities – they share similar requirements for data, structures, process auditability and traceability, and supporting systems. Our single, integrated framework addresses both regulatory compliance (i.e., IFRS 17/LDTI and Solvency II) and business requirements (e.g., real-time pricing, portfolio optimization). And it's built on a platform that has the flexibility to support late-breaking process changes, without disrupting what you're developing or already have in place.
Risk analysis framework
- Perform bottom-up risk analysis by product line and risk type.
- Meet the demands for more robust stress testing and scenario planning.
- A single platform enables life and P&C insurance companies to analyze a variety of risks.
- The underlying platform provides an end-to-end approach – from data sources to reporting – and can serve as the core foundation for an integrated analytical framework.
- The system is fully customizable, supporting the co-existence of multiple regulatory regimes and extension to third-party contributions.
- Flows of execution, calculations and dependencies are clearly visible.
- Documentation is generated automatically from the code and is always up-to-date.
- A scalable architecture – featuring parallel task execution, in-memory processing and grid optimization – results in extremely fast calculations.
Why choose SAS for insurance risk management?
SAS provides a comprehensive framework for meeting governance and auditability requirements for IFRS 17/LDTI, Solvency II or similar regulatory regimes, as well as for aligning to strategies and goals across finance, risk, actuarial and regulatory compliance functions.
Take a comprehensive approach to insurance contract accounting
Refine your approach to implementation − from data sources to reporting – with predefined data models supporting all methodologies required to successfully implement IFRS 17/LDTI – including posting generation, a subledger, process management and governance.
Meet all IFRS 17/LDTI requirements
For IFRS 17, SAS supports the general measurement model (GMM), formerly known as the building block approach (BBA) for long-term contracts, the premium allocation approach (PAA) and the variable fee approach (VFA). For LDTI SAS supports the calculation of net premium ratio (NPR), liability for future policy benefits (LFPB), amortization of deferred acquisition of cost (DAC) and market risk benefits (MRB).
Ensure regulatory compliance
Accurately evaluate your risk exposure – and meet governance and auditability requirements for Solvency II or similar regulatory regimes – with solutions that accommodate new solvency models, data management processes and complex reporting requirements.
Enable on-demand pricing at scale
Take your actuarial ratemaking process to the next level by using machine learning to gain actionable insight and drive agility. Develop more precise tariff models faster through an agile methodology. Quickly deploy tariffs into production, and embed real-time pricing optimization.
Align strategies & goals across finance, risk, actuarial & regulatory compliance functions
Develop strategic plans at the entity level involving appropriate insurance business units.
Operate with greater efficiencies
Relieve the resource burden of stress testing, and reduce cycle times to allow for greater focus on higher-value activities.
Working Smarter With Insurance Risk Management From SAS
Getting a more accurate view of risk and pricing with better data quality
SAS helped IAG New Zealand Ltd. improve the quality and integrity of its address data, enabling the company to geocode 90% of addresses, compared to 70% before SAS. The company has also improved its risk profile and increased the accuracy in its pricing model.
Getting the premium right is the difference between profitable risk and unprofitable risk
SAS helps RSA Canada accurately predict the impact of risk characteristics on customer premiums, while identifying customer segments with growth potential.
Improving data quality to strengthen decision making around underwriting, reinsurance and risk selection
SAS helped Ecclesiastical establish a foundation for compliance with Solvency II's data management mandate, reduce costs related to claims leakage and reinsurance purchase, as well as improve customer service and decision making.
Recommended Solutions for Insurance Risk Management
- SAS for Insurance Contract Valuation | Powered by AzureStay in front of IFRS 17/LDTI compliance requirements without losing visibility.
- SAS® Dynamic Actuarial ModelingReduce silos, automate processes and facilitate cross-departmental collaboration with a complete, end-to-end pricing solution that includes innovative, AI-based premium modeling.
- SAS® Insurance Capital ManagementMeet evolving insurance capital requirements and regulatory compliance demands, and gain a greater understanding of your company's risk and financial condition.
- SAS® Risk StratumAdopt a risk foundation that delivers three tiers of capabilities to match your needs, with each level building on the previous one to form a complete risk management foundation.
- SAS® Solution for LDTIManage, audit and trace all steps of LDTI compliance processes within a single, integrated environment.
- SAS® Solution for Stress TestingMeet the challenges of supervisory stress testing and strategic scenario planning with SAS Solution for Stress Testing.
- Soluzione SAS® per IFRS 17Semplifica la transizione al principio contabile IFRS 17 con i modelli, il workflow e la reportistica migliori della categoria. Pianifica in anticipo la gestione della complessità con un approccio coerente, trasparente e completo alla contabilità dei contratti assicurativi. Dalla data quality ai calcoli fino alla reportistica, SAS fornisce una soluzione integrata che supporta tutte le metodologie necessarie a implementare con successo IFRS 17.
Solutions That Extend Enterprise Stress Testing Capabilities
- SAS® Governance and Compliance ManagerBuild trust in risk and compliance programs by connecting the enterprise.
Explore More on Insurance Risk Management & Beyond
- Articolo IFRS 17: Waiting is not an optionIFRS 17 is a principles-based accounting standard for the future-oriented valuation of insurance contracts. Designed to increase financial transparency, IFRS 17 requires insurers to report in more detail on how insurance and reinsurance contracts affect their finances and risk.
- Articolo Shut the front door on insurance application fraud!Fraudsters love the ease of plying their trade over digital channels. Smart insurance companies are using data from those channels (device fingerprint, IP address, geolocation, etc.) coupled with analytics and machine learning to detect insurance application fraud perpetrated by agents, customers and fraud rings.
- White Paper How to compete in the new era of customer-centric insuranceLearn how to quickly respond to market changes by reducing the time needed to build hand-coded models and accommodating a range of programming languages.