Longevity risk
Mortality levels and trends both contribute to longevity risk
- Population trends as benchmark
- Socio-economic risk classes show differential
- Longevity basis risk: measurement and hedging solutions
Risk management
Advanced internal models measure the volatility of insurance risks
- Measure risk in real-time
- Monitor risk within given confidence bands
- Manage risk by pre-defined interventions
Pricing
Precision pricing drops the margin for error
- Marrying up risk model and customer segmentation
- Portfolio-specific, company-specific or industry benchmark?
Customer segmentation
Know your customers to connect with them
- Socio-economic segmentation
- Geo-demographic profiling
- Risk classification
- Behavioural models
Product development
Now that you know them, give your customers what they need
- Products tailored to customer segments
- Differentiate pricing in line with elasticity
- Predict which features make a difference
Distribution management
Recognise and reward profitable business in real-time
- Predict value of new business at point of sale
- Manage producer-level profitability
- Value-based management replaces top-line volumes
Reinsurance optimization
To optimise reinsurance, model its impact:
- Width of distribution shows riskiness
- Reinsurance structures affect risk in different ways
- Portfolio-specific assumptions enable reinsurance optimisation