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NON-LIFE INSURANCE RISK, COVERED

NON-LIFE INSURERS NEED HIGH-GRADE RISK MODELS

In today’s competitive market, it’s never been more important for non-life insurance companies to build strong business strategies that keep risk and capital under control. But resources are limited and there are tight reporting deadlines to beat. So, how can you meet the demands of regulators, management and boards for better forecasting and risk management – and do it fast?

FIS – The 2023 Global Innovation Report

MEET EVERY RISK MODELING NEED

With advanced technology and services, we empower people and processes across the insurance life cycle. Whatever your size or type of insurance firm, we have the tools and capabilities to meet your challenges head-on.

ACCELERATE ROI WITH FIS

Receivables: Cash Flow Ecosystem

FIS for insurance

Modernizing insurance to the core

Turbocharging operations

Managing risk and compliance

Optimizing the customer experience

Driving digital transformation

Reducing costs

Hover and click to discover more . . .

Achieve economies of scale by outsourcing critical customer communications.

REDUCE COSTS

Gain efficiency, savings and scale.

Digitalize with confidence.

DRIVE DIGITAL TRANSFORMATION

Meet customer expectations with innovation.

OPTIMIZE THE CUSTOMER EXPERIENCE

Stay on top of every risk and regulation.

MANAGE RISK AND COMPLIANCE

Why let friction hold you back?

TURBOCHARGE OPERATIONS

Get cutting-edge core tools, built especially for insurers.

MODERNIZE INSURANCE TO THE CORE

We never stop improving our insurtech. Find out how we can help advance your actuarial models as well.

RAISE THE PERFORMANCE OF YOUR RISK MODELING

Digitize your technology policy

Change keeps coming. CAN YOU KEEP UP?

Do more for your policyholders

of insurers believe innovation will have a positive impact on their business, even in uncertain times

,000

insurance companies around the world

Working with

of the world's largest insurers

including

countries

Customer communications services

Cut costs with managed solutions for cloud, cybersecurity, risk and network services.

Business process outsourcing and technology services

Reduce internal processing and transaction costs with a single payments hub.

Payment factory

Print-to-digital migration

Digital B2B payments and claim processes

Business process outsourcing and technology services

Benefit from industry-leading expertise and keep customer data accurate and secure.

Mitigate fraud risks and win back time from manual tasks.

Accelerate transformation and simplify your technology environment.

Provide more secure and convenient payouts and reduce claim payouts in the long run.

Prepaid and filtered spend cards

Improve revenue and lower premium collection costs with fast, easy and safe cross-border payments.

Global card acquiring factory

Deliver same- or next-day payments from a single system.

Digital claim payouts

Ensure the integrity of your strategies and manage risk, performance and reporting across asset classes.

Investment risk management

Improve business decisions, optimize your risk-return profile and sharpen your competitive edge.

Asset liability management and capital monitoring

Improve visibility and control of all your firm’s cash flows and risks.

Treasury and risk management

Connect, streamline and optimize your operations while ensuring accuracy, transparency and compliance.

Insurance workflow

Understand policyholders’ needs and engage them with personalized communications.

Customer communications

Reduce complexity, improve visibility and better manage liquidity.

Payment factory

Centralize all your finance data and automate and streamline accounting and reporting.

Insurance enterprise accounting

Streamline and accelerate processes for all your lines of business, including health, life, annuity and property and casualty.

Insurance workflow

Model, mitigate and report complex risks easily across your enterprise with more efficiency and control.

Actuarial modeling and risk management

World’s fintech player

Build and run models faster

Consolidate your systems

Govern risk management processes

Meet your specialist needs with modern insurtech

Integrate external models

Achieve compliance easily

Configure as you need

Get in touch

We never stop advancing insurance technology. Find out how we can help you advance your insurance firm as well.

Advancement all around

STREAMLINE OPERATIONS to efficiently meet all risk management and reporting needs

IMPROVE INSIGHT into risk metrics and analytics with BI visualizations

Our advanced solutions have won awards and analyst approval across the insurance industry and beyond.

and we're trusted by experts

Let's talk

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Streamline operations

With many insurers still running most systems on-premise, get safe ways to migrate to the cloud and integrate game-changing technologies like AI.

Minimize the costs of manual processes and earn revenue on qualifying payments.

Digital accounts payable processing

As costs continue to rise, managed services from an expert technology partner can help you reduce your internal IT footprint to control spending.

Rely on a single, scalable, cloud-based platform for all treasury and risk requirements.

Treasury and risk management

Trust the latest risktech to provide a clear, real-time view of cash flows and investments, with full confidence in the accuracy of your data and control of critical processes.

Quickly develop and implement innovative and convenient self-service portals.

Business process outsourcing and technology services

Give policyholders a customer-centric experience, including fast, flexible options for premium collections, claim processing and payouts.

Consolidate your systems and simplify complex processes with solutions that increase automation and reduce manual touchpoints.

From actuarial modeling to policy administration, transform your core insurance operations with specialist technology supported by expert knowledge.

Optimize efficiency, define and demonstrate control and automate and accelerate reconciliation tasks.

Data integrity

Accelerate analytical decisions and future-proof compliance with regulatory requirements.

Deposit fraud and compliance

Seamlessly automate and control every step of the financial close process.

Financial close management

Optimize the analysis and performance of your investments while achieving compliance and control.

Insurance investment accounting

Improve efficiency, deepen analytics and standardize information.

Reinsurance

Automate the administrative process from end to end.

Policy administration

countries

across

of the world's largest insurers

years

and supporting chief actuaries and CFOs for

insurance companies of all types and sizes

,000+

Serving

TRUST A REAL INSURANCE RISK EXPERT

actuarial modeling solution of the year

IFRS 17 SOLUTION OF THE YEAR

BEST-IN-CLASS PROVIDER FOR INVESTMENT ACCOUNTING

Best cash and treasury management solution

Our advanced solutions have recently won awards and analyst approval across the insurance industry and beyond.

RECOGNIZED GLOBALLY

WE KNOW INSURANCE INSIDE OUT

Advancement all around

We never stop advancing insurance technology. Find out how we can help you advance your insurance firm as well.

Get in touch

linkedin.com/company/fis

twitter.com/fisglobal

www.fisglobal.com/insurance

www.fisglobal.com/contact-us

Reduce risk

Improve insight

Our pre-built actuarial libraries and solutions cover capital modeling, reserving, pricing and financial reporting at portfolio and contract level.

REDUCE RISK by improving control over data and minimizing manual errors

gives non-life or general/P&C insurers a complete solution for risk management and modeling.

FIS® Insurance Risk Suite – GI Edition (formerly Prophet GI)

OUR DIGITAL TECH HAS ALL THE ANSWERS

Insurance Risk Suite comes backed with decades of expertise in actuarial modeling, risk management and compliance.

EXPLORE OUR P&C/GENERAL INSURANCE PLATFORM

As part of Insurance Risk Suite – GI Edition, FIS provides software components for reserving and capital modeling.

FIS GENERAL INSURANCE RESERVING

As insurance businesses increase in complexity, you need to not only make reserving calculations faster, but also gain a deeper understanding of the results. But with regulatory and accounting demands increasing, there’s also a growing need to control the calculations and demonstrate auditability. FIS General Insurance Reserving provides a powerful platform for calculations on multiple reporting bases. With a user-friendly interface, the solution gives you a controlled and robust environment to both perform reserving calculations and manage associated reserving processes efficiently and consistently.

A MODERN END-TO-END RESERVING SOLUTION

RESERVING IN ACTION

Watch a short, step-by-step demo of our modern reserving solution.

Reserving methods Reserving functions Data and process management Financial reporting support Integration with our end-to-end platform Improved insight

FIS GENERAL INSURANCE RESERVING

• Basic chain ladder • Inflation adjusted chain ladder • Munich chain ladder • Double chain ladder • Expected loss ratio • Bornhuetter-Ferguson • Benktander • Average cost per claim • Frequency and severity • Cape Cod

RESERVING METHODS

Prebuilt reserving methods include:

Select reserving processes out of the box or configure your own models using open code, for precisely the results you require.

• Berquist-Sherman • Fisher Lange • Premium allocation approach • Schnieper method • Mack • Mack with tail • Merz and Wuthrich • ODP bootstrap with and without process variance and bias adjustment • Bornhuetter-Ferguson bootstrap • Mack bootstrap

• A flexible data management system • Embedded data management processes • Annual, half-yearly, quarterly or monthly origin period and development period functionality on either accident or underwriting period bases • Integrated standard or bespoke reporting and graphical analyses integration

Access FIS’ market-leading data management and governance tools, including:

Process calculations of any volume or complexity with equal speed and efficiency – and customize processes to meet your exact requirements.

DATA AND PROCESS MANAGEMENT

Carry out reserving and reviewing as distinct, fully auditable processes and clearly define and authorize who can make, change and approve calculations. For traceability, drill down through any result to underlying source development patterns and triangles. Plus, track who has done what and when with an audit log and build a full audit trail.

Use General Insurance Reserving as part of the wider Insurance Risk Suite data management platform, including an enterprise-level production environment and data warehouse, with full process control. Integrate with the Insurance Risk Suite IFRS 17 Group Calculations library for full end-to-end IFRS 17 reporting.

INTEGRATION WITH OUR END-TO-END PLATFORM

Load, access and review data more easily and calculate, blend and compare multiple results faster. Support your analysis with customizable reports and advanced visualizations that use 3D graphs or charts and allow you to zoom into the details.

IMPROVED INSIGHT

CAPITAL MODELING, COVERED

Effective capital management is key to not only achieving regulatory compliance and protecting your GI/P&C business but also to sustaining its profits. But to strike the right balance between capital efficiency and growth, you need risk models that can meet your firm’s changing needs precisely. Thanks to a user-friendly interface and a library of simple, transparent actuarial code, FIS General Insurance Capital Modeling makes it easy to create non-life insurance projection models and better manage your capital. You can quickly adapt or extend the code to model any bespoke products or regulatory variation – and readily understand which factors drive certain model results.

SIMPLE CODE FOR CONFIGURABLE MODELS

FIS GENERAL INSURANCE CAPITAL MODELING

Analysis outputs Core functionality Financial reporting statements IFRS 17 Catastrophe model data Reinsurance Aggregation Capital modeling Assets Economic scenarios and market risk Curve fitting Capital modeling components

FIS GENERAL INSURANCE CAPITAL MODELING

• Written and earned premiums/underwriting risk • Single or regular premiums • Lapses and renewals • New business modeling including volume fluctuations • Attritional and large claims • Frequency and severity, including individual large claim modeling • Aggregate burn cost • Loss ratio, including ultimate or per accident period • Catastrophe claims • Claim payment patterns by claim type (e.g., attritional, large and catastrophe; direct or ceded recoveries)

• Using General Insurance Reserving library data and models • Direct modeling of ultimate claims and • Payment patterns • Allocation of accident period to underwriting period cash flows and reserves • Ceded proportions by reinsurance contract

Premiums, remaining coverage and reserves

Apply either deterministic or stochastic Monte Carlo or Latin Hypercube simulation technique to perform the following core projection functions using grouped or individual model point data:

CORE FUNCTIONALITY

• Premiums, written and earned, and revenues • Claims, incurred and paid, and expenses • Investment income and gains, and tax • Foreign exchange revaluation • Balance sheet assets and reserves • Annual, semi-annual, quarterly or monthly calculations • Multiple-basis discounted or undiscounted balance sheet and income

Create financial reporting statements on:

FINANCIAL REPORTING

• Best estimate cash flows • Discounting/time value of money • Risk adjustment • Direct and ceded

Fulfilment cash flow calculations

Meet IFRS 17 reporting requirements with calculations on multiple bases.

IFRS 17

• Internal models • Major vendor models, including ELT, YLT and empirical loss distribution outputs

Import catastrophe model output from:

CATASTROPHE MODEL DATA

Handle all major types of reinsurance, including: • Proportional/quota share • Non-proportional • Per risk • Per event (e.g., CAT) • Aggregate • Stop loss Apply key reinsurance modeling functionality: • Reinsurer default models - Probability of default - Loss given default - Bad debt amounts - Non-performance of reinsurer • Reinstatement premiums • Adjustment premiums • Stochastic payment lag • Multiple contract layers and contract parties • Cash flow modeling by ceded contract

REINSURANCE

Through a range of mathematical functions in a specialized math plugin, support various forms of aggregation, including: • Elliptical copulas/correlation matrices: Gaussian normal and Student T • Archimedean copulas: Gumbel, Clayton and Frank • Independence and dependence

AGGREGATION

With curve-fitting capabilities, General Insurance Capital Modeling provides a simple path between present and future to meet your current and coming capital modeling needs. Model types range from simple deterministic projection models to full stochastic capital models.

• Financial statements, such as cash flow statements, revenue accounts and balance sheet • Capital allocations • Profit distributions • Analysis of claims • Business plans • Premium and claim reserves • Business unit performance • Risk performance (e.g., combined and loss ratio) • Capital and surplus, standard formula or internal, economic models

Use our General Insurance Capital Modeling library to create key reports, including:

Incurred claim reserves

• Current rate • Previous forward rates • Locked-in rates: GMM underwriting and PAA accident period bases

Multiple discount rate bases for reporting

• GMM, PAA or VFA models as required • Direct and ceded reporting • GMM CSM and loss components • PAA onerous increase in liability • PAA DAC amortisation or expense • OCI • Financial statements and disclosures

Full IFRS 17 financial calculations from fulfilment cash flows*

*Supplied with the Insurance Risk Suite IFRS 17 Group Calculations library

Capital modeling methods, including: • Capital − One-year and multi-year projected balance sheet approach (e.g., Solvency II) - Recognition pattern/risk emergence - “Actuary in a box” re-reserving methods • Basic chain ladder • Bornhuetter-Ferguson • Benktander • Ultimate projected balance sheet (e.g., London market) • Risk margin and risk adjustment calculations and calibration • Time-zero balance sheet scaling • Provision for events not in data (ENID) • Standard formula capital calculations - Solvency II SCR - Solvency II risk margin - Solvency II USPs - South African, SAM, SCR - KSA RBC

CAPITAL MODELING

With the Insurance Risk Suite Asset-Liability Strategy (ALS) library, model a comprehensive range of assets, including: • Standard assets • Cash • Bonds (fixed rate, index-linked and FRNs) • Equities • Selling and reinvestment, proportional or new investment profile • Flexible valuation and reporting methods (e.g., amortized book value, purchase cost, market value and lowest values) • Enhanced assets (ALS library asset functionality) • CMO/MBS • Sinking funds • Wide range of derivatives • Other types of bond (e.g., callable)

ASSETS

Consume economic scenario data, for market risk management: • External economic scenarios using ESG providers, including: - FIS Investment Risk Manager (formerly APT) - Moody’s and Conning - In-house providers

ECONOMIC SCENARIOS AND MARKET RISK

Integrated directly with General Insurance Capital Modeling, perform univariate, multivariate and copula curve fitting: • Supply full sets of experience data. • Fit a number of different distributions, continuous or discrete. • Select parts of the data to include or exclude: ignore outlier values, fit to a specific section e.g., just the tail, over the 75th percentile. • Provide a number of goodness of fit statistics to assess appropriateness. • Show graphical fits, including P-P and Q-Q plots, and CDF plots. • Supply a set of moments to fit to as opposed to a full dataset.

CURVE FITTING

Report effectively

FIS insurance risk expert Neil Covington explains how General Insurance Reserving ’s digital architecture makes reserving easier all around.

RESERVING, COVERED

• Standard Insurance Risk Suite databases • An intuitive graphical interface for the presentation of the reserves • Simple deterministic or fully complex stochastic calculations • A wide selection of techniques for creating and analyzing development factors and reserve run-off projection, along with common development factor examples • Blended or multiple versions of development factors for the same variable • Powerful statistical methods for fitted curve development • Models using both paid and incurred development triangles • Automatic calculation of user-specified standard factor development patterns and reserves • Results selection across all methods and versions included, by individual origin period or in total • Discounted projected cash flow results

functions

Support reserving methods with:

Get a controlled and robust environment to perform reserving calculations and manage associated reserving processes efficiently and consistently.

RESERVING FUNCTIONALITY

• Discounted or undiscounted reserves • Both Solvency II and IFRS 17 best estimate liabilities • Risk adjustment calculations and calibration • Rollforward prior analyses and selection • Actual versus expected analysis of undiscounted and discounted movements

functions

Calculate on multiple reporting bases from the same or different underlying reserve models, including:

Get a controlled and robust environment to perform reserving calculations and manage associated reserving processes efficiently and consistently.

FINANCIAL REPORTING SUPPORT

ECONOMIC SCENARIOS AND MARKET RISK

General Insurance Capital Modeling integrates with other core components of Insurance Risk Suite, including: • An intuitive Windows-style user interface • An experience and rate analysis tool for selecting relevant variables, and pricing • Data management functionality, including a data conversion system and a data repository for data warehouse integration and persistent data storage • The IFRS Group Calculations library for full, end-to-end IFRS 17 reporting • A powerful and controlled production environment for efficiency and governance • A process automation tool for control • A financial reporting sub-ledger and general ledger integration Through the user interface, you can: • Import initial model assumption sets, set up sensitivity variants and scenarios, define your settings and run the model. • Submit queries for quick feedback and access spreadsheet templates for reporting. • Define, tailor and develop your own interface forms as required, using a built-in designer tool and standard spreadsheet reporting templates.

CAPITAL MODELING COMPONENTS

Discover FIS General Insurance Reserving

Discover FIS General Insurance Capital Modeling