DIVA Advanced Stochastic & Dynamic Financial Analysis Modeling

Transcription

1 DIVA Advanced Stochastic & Dynamic Financial Analysis Modeling A flexible, intuitive tool to model the financial impact of complex, volatile insurance s in a rapidly changing environment

2 Introducing DIVA DIVA is a sophisticated stochastic financial modeling tool. It was initially developed by Dion Durrell to enable its actuaries and consultants to provide financial modeling solutions to complex problems facing its clients. In its current form, it has been designed and developed to meet the robust management requirements contemplated under principles based capital (including Solvency II) regulatory requirements. DIVA is a powerful, easy to use modeling software that enables users to better understand the dynamics of their organizations, measured in financial terms relevant to senior management, in an efficient and cost effective way. DIVA s ability to model on a total balance sheet basis (i.e. both assets and liabilities on an integrated basis) plus its ability to model both Life and Property & Casualty business lines, represents state of the art capital modeling technology. In addition, DIVA s capabilities extend to other applications such as enterprise management, reinsurance strategy optimization, asset liability management, business planning/forecasting on a total balance sheet basis, reserving and rating agency analysis, to name a few. Due to its architecture, DIVA can readily and easily be embedded within a company s operations at all levels (e.g. the business operating unit, group corporate level) and integrated in its decision making process. Finally, DIVA has been designed to integrate in a seamless manner with other corporate systems. DIVA can be used by a variety of organizations, including insurers, captives, reinsurers, rating agencies and insurance regulators.

3 Power with ease DIVA is an intuitive yet powerful and easy to use software that combines: Drag-and-drop, modular components from a wide-ranging library for rapid model development and customization Easy ability to write your own formulas wherever necessary Integrated charting and reporting at the click of a button Powerful, fast execution of thousands of scenarios Easy import/export of data with popular office software Batch capability to run sensitivity testing any way you would like The Goal Seek capability gets any result mean, percentile, or other metric by automatically adjusting any input DIVA takes the tedium out of constructing and running models. It lets you put your effort into the analysis of s and the design of solutions. Components DIVA provides a wide range of pre-written components which are simply dragged on to a picture window in the model. Pre-written components provide a range of: Common statistical distributions Frequency/severity modules Financial statements Excess reinsurance programs Multi-year run-off patterns Life and disability insurance modules with seriatim data Political and other geographic-contagious exposures Interest and economic scenario generators Investment income with individual asset lists and definable future investment strategies Seriatim input files to represent policy listings or event-driven claims simulation Catastrophe event or other inputs from external models Library components are written in compiled code to produce execution speed and algorithm sophistication that can t be matched by spreadsheet-type programs. Full feature formula capability is available on inputs to components. Other components let you build your own modules with familiar spreadsheet-like formulas combined with intelligible variable names.

4 Determining the optimal balance of and reward DIVA s powerful modeling capabilities can be used for: Enterprise Risk Management Reinsurance strategy optimization Product/reinsurance treaty pricing Pro-active capital management including assessment thereof in pricing and product mix Asset liability management Business planning/forecasting on a total balance sheet basis Reserving Rating agency analysis/discussions See it your way Charts Easy drag-and-drop construction applies to results as well as to model construction. Any output item can be charted, analyzed or summarized by simply dragging it to a new or existing chart. A large number of settings allow key statistics to be generated about any information. Chart routines store all scenario results so new views or key items can be readily viewed without re-running the model. Reports Fully formatted text reports can be built with equal ease. Reports are not limited by conventional spreadsheet sizes they can contain hundreds of thousands of rows and columns, and hundreds of thousands of scenarios. Build it your way DIVA allows easy interconnection from any component to any other component in any order. Input to any component can be a constant, or a random variable, or a formula combined with other components. The order of connections can be viewed graphically, or components can be viewed in the tree structure. Models can be organized with each business unit or other logical structure each appearing on its own picture.

5 The complete modeling tool Underwriting Operational Reserving DIVA Liquidity Market Credit Get the answer your way Goal Seek Let DIVA adjust any input automatically until any desired output is reached whether it s the mean, a percentile, or other metric. Model Compare Compares any models and tells you only the differences. Find Tells you where anything is used in the model. Batch Processing Run several different models, or run thousands of scenarios with sensitivity testing. Batch Processing runs DIVA for you, changes the inputs, and runs it again. Append Lets you import anything from one DIVA model to another. Connectivity DIVA easily and instantly imports and exports to the Windows clipboard, text files, databases and Microsoft Office software. Support services DIVA is fully supported by Dion Durrell. Our services include: Modeling and technical support Comprehensive on site training Expert consultancy Project management Hardware requirements DIVA runs on any Windows-based PC. DIVA makes full use of Single, Dual and Quad processors and Multi-processor servers. For best results, 1Gb or more of RAM and clock speeds of 1GHz or higher are recommended. On-line Help Extensive, context-sensitive help is available at the press of the F1 key. Total Transparency With exceptional edit, tracking, validation and audit features.

6 About Dion Durrell + Associates Dion Durrell is an actuarial and management consulting firm servicing clients around the world from offices in Toronto, Montréal, Chicago, London and Barbados. We provide independent, conflict free advice and focus on driving tangible results for our clients, through creative thinking, innovation and knowledge transfer. The firm s practice areas include property and casualty, life/financial services, reinsurance, healthcare liability, alternative transfer and management. For further information visit Further Information To request a demonstration of DIVA, please contact: John Fitzpatrick T: Julie-Linda Laforce, FCAS, FCIA T: Steve Prince, FSA, FCIA T: Michel Trudeau, FCAS, FCIA T: DIVA@dion-durrell.com Toronto Chicago Montréal London Barbados dion-durrell.com