Operational agility, flexibility, total security and near real-time information form the key criteria modern insurers need to incorporate into actuarial modelling to ensure they are future-proof, according to software vendor FIS.
Martin Sarjeant, senior vice president for product management for insurance, and Neil Covington, director of solutions management, for general insurance, said adopting these criteria would help insurers manage “a new world of risk” as well as further changes that might be required.
On operational agility, the pair said insurers had pivoted away from office-based environments to remote working during the pandemic, but now needed a more long-term solution.
“Most firms managed this [remote working] by providing VPNs for staff to access critical systems.
“But that was a tactical and temporary fix: the long-term solution is to have applications that are based and managed in the public cloud.”
FIS also touted how cloud-based systems had shown their worth during the pandemic as boards sought near real-time information on risk and internal solvency.
“Getting results fast meant not only having a really flexible solution for modelling and assumptions, but also not being constrained by on-premise fixed hardware” the pair said.
Sarjeant and Covington’s full analysis forms part of The Future of Risk Modelling supplement, a jointly produced report between InsuranceERM and FIS.
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Companies:FIS