The goal for our phase one ERM development is to be a powerful underwriting decision making tool. The main achievements we have made are:

  • Completed the framework that creates various coverages and policies dynamically under your finger click, making the model foundation solid and flexible. 

  • Completed the framework that generates reinsurance treaties dynamically, covering wide range of line of businesses with various ceding patterns. 

  • Mirrored insurance company's underwriting structure to reflect the comprehensive interactions of underwriting, pricing, reserving and risk management.

  • Built complete simulation function that generates all kinds of distributions for frequency, severity and loss ratio based upon company’s own data.

  • Built copula to investigate multi risk correlations. The illustration copula (limited for two variables for illustration purpose) was published as an open resource.

We are still working on:

  • Incorporating investment strategy and investment risk.

  • Incorporating tax impact and tax strategy.

  • Finalizing the impact (profit and solvency) on financial statement (GAAP/SAP).


Again, feel free to download our Illustration Copula. You can use it to perform correlation calculations, FFT, IFFT, to investigate distributions, to create bivariate copulas and do bivariate IC modeling etc. 

Copyright ©2011 Goouon