Competitive pressure and increased scrutiny from regulators, rating agencies and investors are making insurers ever more reliant on financial analytics to help manage risk and capital. Financial engineering and actuarial science offer promising techniques for improved financial analytics. But insurers struggle to leverage these methods in financial models because they can take so long to run.
Insurers have turned to high-performance computing to solve this problem. By splitting the work into smaller jobs and running them in parallel on a grid of computers in a datacenter, they finish in much less time.
But datacenters are expensive, and some companies are reluctant to invest in sufficient capacity to handle peak demand. Cloud computing offers a new approach: insurers can run large jobs over the internet using datacenter resources that they rent, rather than buy. Cloud computing can provide massive scalability, even on short notice.
Imagine the financial analytics you could get with massive on-demand scalability like that:
- Rapid completion of calculations for quarter end and yearend reporting
- More time for analysis and review
- Thorough, accurate sensitivity calculations for attribution analysis
- Helps you understand and explain financial results better
- Sophisticated financial modeling to comply with emerging regulatory reporting requirements
- Solvency II and Principle-Based Approaches
- Robust analytics to further embed enterprise risk management in your business
- Timely calculation of Greeks to help manage hedging operations
- Precise valuation of companies or blocks of business in mergers and acquisitions