Philosophy

Our Philosophy

Our aim is to connect insurance companies and asset managers affected by Solvency II regulation with academic research to provide high quality solutions. With our background in the financial sector, IT and academia we are confident to meet our ambitious goals.

 

Insurance companies are facing new and different challenges in the current market environment. In addition to low interest rates and prevailing uncertainty on equity markets, insurers must also adapt to the new regulatory requirements of Solvency II.

Due to the new set of rules relating to solvency capital requirement, insurance and reinsurance companies are likely to adapt their asset allocations. In addition to traditional risk / return considerations solvency constraints must also be taken into consideration when formulating strategic or tactical asset allocations. In this context some asset classes will lose and some will gain attractiveness. Solvency II also imposes constraints on instrument selection. Depending on a company’s balance sheet, i.e. the structure of its assets and liabilities, securities with certain currency exposures, maturities, credit spreads, coupons, etc. will be preferred to others.

In order to ensure an efficient allocation of assets under Solvency II / SST, asset managers must have an integrated view on assets, liabilities and capital requirements. In addition to the assets already held in their portfolios, they will also screen further securities within their investable universe and analyze solvency relevant overlay strategies. With the universe of assets being vast, and the company specific asset and liability structures complex, an optimal instrument selection and asset allocation are formidable tasks.

SolvencyAnalytics is designed to provide support for these challenges with solutions customized to the client’s needs.