riskpro™ is insurance ready

Zurich, April 10, 2008 -- IRIS integrated risk management ag, a Swiss based company specializing in risk and profitability analysis solutions, informed today about the latest enhancements to its field-proven riskpro™ solution for insurance companies.

riskpro™ allows now to model premium and loss triangles in the non-life sector. The system automatically derives premium earned, unearned premium, net present value of reserves, etc. from the entered information. This can be combined with riskpro™’s Monte Carlo Dynamic Financial Analysis (DFA) simulation techniques, allowing the calculation of the minimum capital requirements with the most advanced methods.

riskpro™ incorporates the latest techniques available in the market and offers a systematic and audit proof solution for Solvency II. “Many insurers do not see yet the difficulties linked to these processes and many think this can be done manually. But manual processes are error prone. In a few quarters, the benefits of a systematic and audit proof process will be much better understood”, says Willi Brammertz, Chief Technology Officer and co-founder of IRIS.

Another advantage for customers is the way in which riskpro™ integrates the asset and the liability side of the balance sheet in dynamic DFA simulation. The balancing process makes sure that any surplus money is invested and that exceptional cash drains are reduced.

The level of integration within the dynamic Monte Carlo simulation techniques of riskpro™ with respect to all risk classes (insurance, market, operational and credit risk) is unique. If the company is a bancassurer it is even possible to integrate the banking and the insurance operations in a fully coherent way. This is exactly the case of one of riskpro™ customers, KBC, a large Belgian bank and insurer, which is using riskpro™ for the integration of the bank and the insurance ALM on a global basis.

Banking and insurance ALM are exposed to similar ALM risks. By integrating them it is possible to take decisions based on the net ALM position.

But probably the most useful characteristic of riskpro™ is the extreme flexibility of its contract approach. This allows modeling different flavors of life insurance contracts, where diversity plays an essential role. DFA is also fully parameterizable to the needs of the individual insurance companies.

Besides the mentioned strong points, there are many techniques available in riskpro™ such as V@R, CV@R, stress and back testing. The assets and the liabilities have to be interfaced only once into the system. Once they are there, all these techniques are available on demand.

About IRIS AG

IRIS integrated risk management AG (www.irisunified.com), founded in 1992 in Zurich, continuously develops, maintains and supports its riskpro™ financial analysis infrastructure for banks, insurers and corporations. Delivery, implementation, consulting and support are executed worldwide by a network of IRIS professionals working today out of Switzerland, Frankfurt, Warsaw, Dubai and a number of global and regional partners.

About riskpro™

riskpro™ enables organizations to measure and monitor risk and profitability enterprise-wide with a single cost effective integrated analysis solution. riskpro™ covers in a modular way: Market Risk Analysis, Credit Risk Analysis, Performance and Funds Transfer Pricing, Dynamic Simulation, Strategic Enterprise Management (SEM), Limit Management, Settlement Risk, Rating / Scoring, Basel II, Regulatory Capital, Economic Capital, Capital Allocation, IAS 32 & 39 / IFRS 7, Solvency II, Asset and Liability Management, Liquidity risk Management and Analysis, Operational Risk.

These analyses cover all financial products, from saving accounts to exotic options, for any type of accepted valuation method. The underlying universal contract-centric data model and calculation engine of riskpro™ ensures precision and consistency in all results. riskpro™ is currently being used or implemented in over 230 small to large financial organizations in more than 20 countries.