Data analytics provider Verisk has announced the release of Life Risk Navigator, a cloud-based stochastic risk modelling platform to inform risk selection, quantify changes in mortality rate, and improve hedging strategies.
The analytics provided by Life Risk Navigator are driven by Verisk’s Life Risk Models, a set of probabilistic risk models that simulate mortality trends, causes of death, and excess mortality events at a granular level.
“As the life insurance industry undergoes a digital transformation, the demand for modern analytics platforms has grown significantly,” said Maroun Mourad, President of Global Underwriting at Verisk.
“Life Risk Navigator brings together a robust modeling suite and allows organizations to streamline their pricing, ERM, and portfolio optimization workflows into a single platform.”
According to Verisk, the range of tail risk metrics included in the platform enable portfolio benchmarking, optimization, and Solvency II modelling.
By capturing trend risk at an individual level, the idea is that Life Risk Navigator can, diminish adverse selection and enhance profitability through greater pricing precision.
“Backed by AIR Worldwide, a trusted leader in risk modeling and analytics, our Life Risk Models go beyond traditional actuarial methods to explicitly capture dynamic mortality and morbidity risk associated with changing habits and lifestyles, as well as excess mortality events,” continued Mourad.
“By incorporating this detailed understanding of the drivers of mortality risk and possible trends over a policy’s lifecycle, life insurers and annuity providers can make better risk management decisions that align with strategic goals.”