General description of system
Algo Risk is designed to provide a consistent, enterprise-wide view of risk, an essential outlook for firms seeking to manage capital and maximize investment performance through intelligent risk-taking. Supporting underwriting, market, credit risk, and portfolio management activities across both assets and liabilities, Algo Risk helps firms to manage economic capital, enhance productivity and ultimately generate greater shareholder value. Algo Risk offers insurance firms a comprehensive and integrated risk management platform that brings together assets and liabilities on a market-consistent basis, enabling automated and detailed risk measurement and reporting processes with controls and audit trails.
VIPitech is a powerful modelling system designed for advanced financial and actuarial analysis within a state-of-the-art, IT-compliant modelling platform. In April 2010 the VIPitech Enterprise Production Server (VIPitech EPS) was released, designed to allow complete centralized management of the actuarial model production process.
Functions performed
Algorithmics' Economic Capital,Risk Management and Solvency II uses Algo Risk to provide insurance decision-makers with a unified and consistent overview of risk, incorporating innovative risk methodologies such as portfolio replication, curve fitting and risk aggregation. The framework supports risk analyses at both the enterprise and business-unit levels, enabling the measurement, management and reporting of Solvency Capital Requirements (SCR) under Solvency II regulations in order to facilitate approval for standard, full or partial Internal model-based (IMB) methods. Its risk measurement, management and reporting processes are automated, enabling the rapid generation of detailed risk and compliance reports at both individual and aggregate levels consistent with Solvency II standards. This enables decision-makers to swiftly recognize the full spectrum of a firm's material risks, and enables them to readily incorporate risk management in their planning to meet current challenges and support future growth.
VIPitech is used primarily for financial reporting and business management purposes, ERM, risk-based modelling, risk and capital management including economic capital, Solvency II, ALM and stochastic calculations, MCEV, EEV, EV, profit testing, product design, product pricing and strategic business planning.
Specific Solvency II features
Pillar One - Quantitative requirements: valuing assets, liabilities and capital
- Selection of standard formula, partial or full internal models
- Calculation of economic capital using inputs from multiple existing systems
- Customize inputs, for example, prices, data and assumptions
- Extensive quantitative risk models and techniques, for example, award winning replicating portfolio techniques, curve fitting and stochastic on stochastic calculations with variance reduction techniques
- Integration with or availability of other risk types (market, credit, liquidity, insurance and operational risks)
- Risk aggregation methodologies through variance-covariance matrix, copula or causal modelling.
Pillar Two - Qualitative requirements: focus on supervisory and internal risk management processes
- Workflow management and audit component that enforces rigorous, data-driven management of the modelling/reporting cycle, including "four eyes" approval for important tasks
- Provides ability to define the reporting period and timeline dates, define the reporting hierarchy and track key input data
- Ability to perform real-time solvency and what if calculations
- Stress testing and back testing toolsets
Pillar Three- Transparency and disclosure requirements
- Flexible, interactive risk portal that can be tailored to meet the unique business needs and personal preferences of different users/teams
- Dashboards facilitate better understanding irrespective of risk sophistication of end user
- Fully flexible, multi-level aggregation and attribution functionality produces reports at any level (geographic or hierarchical entity, business unit, risk type, etc.) for end users
- Provides daily analysis and reporting of risk and capital results, drill-down analysis, aggregation and attribution analysis, stress testing and what if analysis.
Specifications
Designed to meet current and evolving business needs, Algo Risk is available as an in-house implementation or as an outsourced offering. Algo Risk is an enterprise system designed to run in a data center. It provides a multi-tier architecture that is both highly scalable and highly customizable. The system is typically integrated with other sources such as market data systems, actuarial projection systems such as VIPitech, portfolio management systems, etc. Algo Risk provides a number of user interfaces providing system integrators with the ability to configure and extend the systems as well as users interfaces providing business users with the ability to report and analyze risk.
VIPitech can be installed simply both on a desk-top and network. VIPitech EPS is an extremely powerful, enterprise-level production system. Used alongside the VIPitech Modeller development environment, it delivers a flexible yet robust, secure and controlled, complete basis for streamlining any ERM modelling framework. It is accessible via a web-browser in which actuarial models can be managed and executed using central hardware such as a grid facility. Flexible configuration can allow VIPitech EPS to integrate with other enterprise systems.
Licensing/sales/support
Algorithmics operates an integrated global services and support organization across all its solutions. First- line support is provided through our Algo Assist helpdesk team, with second- and third-level support channelled to customer and development teams as necessary. Algorithmics provides a 24/7 support and maintenance service.
Types of user
Algo Risk and VIPitech are used by risk managers, asset managers, actuaries, financial engineers and IT engineers
Areas/countries with the most users
Worldwide with tier 1, 2 & 3 insurance companies.
Algo Risk users include ING, Allianz, Aegon, Pacific Life and others. VIPitech has over 150 clients in 54 countries since its launch in 2006.
Contact person and details
Heather Smith
Senior Communications Manager
Algorithmics
Tel: +44 (0) 20 7392 5820
Mob: +44 (0) 7515 974 223
heather.smith@algorithmics.com
www.algorithmics.com
