The integrated management of the insurance business in the choices of short or long
periods relating to the optimal structure of assets in relation to liabilities is supported by
the analysis of the Asset Liability Management (ALM) made by SimCorp Sofia.
SimCorp Sofia modules:
Asset side:SimCorp Sofia provides the users with the advantage of being able to conduct an analysis of the
values and of the perspective flows by having on hand data with an elevated level of detail, even down to the single holding. Furthermore, the projections are carried out on the same data reference database used for management and administrative elaborations.
Liability side:It is possible to integrate into SimCorp Sofia the management data of policies portfolios and to calculate the relative flows (premiums and outgoings for expiry, redemption and claims) by defining models of policy-cluster having the same characteristics (rate, duration, anti-duration, mortality tables, etc.).
The ALM module can also be used for budget forecast, by circumscribing the analysis to financial asset portfolios. A stochastic ALM module, based on Hull-White model for bonds market and on Black-Scholes model for shares market, is also available.
The module allows to launch simulations on a big number of scenarios in order to measure the response of a portfolio to peculiar economic conditions.
Overall simulations results and details of each scenario can be investigated with the help of interactive graphs.