FINDING THE RIGHT RESERVE IS CRUCIAL IN AN INSURANCE INDUSTRY WORLD DOMINATED BY ERM AND SOLVENCY II.
ERM AND SOLVENCY II
- Too high a reserve will translate into an increase of capital need and a diminution of the available capital, with the consequence of a double impact on insurance companies’ ROE.
- Too low a reserve would imply future negative run offs of reserves, an unanticipated need of cash flow and subsequent risk of illiquidity.
In today’s environment reserving is no more about providing only a single figure for reserves. Risk managers, auditors are asking for evaluation of uncertainty attached to reserves calculations: best estimate of reserves have to be completed by measures of risk and of confidence intervals.
A specialist of reserving software with its ADDACTIS® IBNRS®, ADDACTIS® Worldwide is in a position to answer efficiently the needs of its clients about reserves. ADDACTIS® IBNRS® software is routinely used by Actuaris teams to compute reserves. Using ADDACTIS® IBNRS® actuaries are in a position to provide calculations under diverse methods from Chain ladder to JRMCMC, from deterministic to stochastic.
The compulsory use of ADDACTIS® IBNRS® to elaborate our reserving reports guarantees that you can have a full audit track of our calculations.
Tired of having just one point of your whole reserves distribution? Want to know more about your underlying risks?
Just ask for more information on ADDACTIS® Worldwide ERM-compliant reserving report by contacting us.