SS&C Algorithmics for Insurance

Empowering insurers to achieve regulatory compliance, make risk-aware decisions and manage investment portfolios

SS&C Algorithmics for Insurance is a comprehensive solution for insurance and reinsurance firms looking to enhance their risk analytics platform to comply with regulations, improve the business decision-making process and support their investment and balance sheet management activities. The solution leverages thirty years of financial engineering expertise, delivering successful projects at some of the largest global insurance and reinsurance groups. It allows implementation of fully customized market and credit risk management systems, with the ability to support business scopes such as:

Economic Capital (EC) & Regulatory Capital—Algorithmics for Insurance supports Internal Models for Solvency II and other regulatory frameworks. Clients use it to support their regulatory reporting on Solvency Capital Requirements (SCR), Risk-Based Capital (RBC), ORSA, Base Solvency Buffer (BSB) and other Capital Adequacy measures.

Asset and Liability Management (ALM)—Algorithmics for Insurance allows to simultaneously stress and analyze risks on asset portfolios versus liabilities stemming from insurance contracts, with accurate cash-flow projections. Clients use it to identify cash-flow mismatches, monitor liquidity risk, and validate the robustness of their investment strategy.

Portfolio Optimization and Strategic Asset Allocation (SAA)—Algorithmics for Insurance integrates a powerful portfolio optimization solution, which enables insurers and pension funds to improve their asset allocation with respect to a liability benchmark, and to implement their Liability Driven Investing (LDI) and hedging strategies.

SS&C Algorithmics for Insurance embeds a simulation and pricing engine, an economic scenario generator (ESG), and a risk aggregation and reporting dashboard, which can be deployed on-premises or on-cloud. The modular approach of the solution offers a wide set of key features, including:

  • Balance sheet projections—Algorithmics for Insurance allows to run stress tests, as well as large scale Monte Carlo simulations, projecting market-consistent values and cash-flows of both assets and liabilities to any future time horizon.
  • Joint market and credit risk—Users can analyze the impact of migration and default events, in isolation or in correlation with market risk factors, improving the analysis of concentration risks and accounting for full diversification benefits.
  • Risk Dashboard—The solution supports several risk aggregation (for example, using copulas) and attribution techniques across reporting hierarchies, risk types or any other characteristic. Sandboxes are created to enhance "what-if" analyses, for example, to test changes in the portfolio composition.
  • Broad asset coverage—Algorithmics enables native instrument modeling across a broad range of asset classes, including publicly traded instruments, OTCs, alternatives, structured products and private assets. Our pricing engine is widely used by sell-side and buy-side financial institutions worldwide.
  • Proxy Calibration—Algorithmics for Insurance supports the construction, calibration and simulations of proxy functions for liabilities (and asset portfolios, if required) including: Curve Fitting, Least Squares Monte Carlo (LSMC), Replicating Portfolios, etc.
  • Economic Scenarios—Algorithmics for Insurance provides advanced scenario modeling and calibration techniques to generate historical, conditional and Monte Carlo scenario sets under real-world or risk-neutral measures over multiple time horizons. Sobol sequences allow to improve the convergence of risk estimators.
  • Managed Data & Analytics Service on Cloud—Algorithmics deploys time-tested software components in a security-rich cloud environment, populated with curated market data and managed by a dedicated team of experienced professionals.

Learn more about the SS&C Algorithmics Cloud Platform