3 FEBRUARY 2016 – Numerical Technologies announced the latest release of NtInsight® for ALM. The update equips the system with more flexibility in stress testing and asset and liability management, especially for insurance companies. As for regulations, the update follows closely on ORSA and Solvency II to help insurance companies fulfill the requirements with both better accuracy and efficiency.
NtInsight® for ALM, Numerical Technologies’ solution for enterprise risk management, features:
Compatibility with ESG (Economic Scenario Generator)
To better serve increasing number of insurance companies that use third-party ESG for scenario generations, NtInsight® for ALM allows user to upload ESG scenarios as user-defined scenarios. Besides, arbitrary number of user-defined scenarios can be set (limited to system resources), which means it is also possible to generate profit/loss distribution, and calculate indicators such as VaR under specified economic situations.
Derivative and hedging in financial plans
As Insurance companies tend to use derivatives to hedge their foreign currency exposure in their positions, NtInsight® for ALM enables buy and sell of derivatives (FX-forward and currency swap) in simulation once certain criteria are met. The simulation results can be grouped by transaction currency, which is often used by our existing clients for macro-hedging.
Various accounting rules supported
In NtInsight® for ALM, various accounting rules are available for general profit/loss (e.g. Mark-to-market, Accrual), amortization, impairment loss and appreciation. Users can set up accounting rules either aggregately or by individual transactions. The flexibility enables NtInsight® for ALM to replicate the actual financial structures of clients from different backgrounds.