Asset Portfolios of insurers are subject to risks that can often exceed the risk of losses from natural catastrophes. Asset Risk can arise from economic recessions and crises that can unexpectedly reduce the market value of securities and cause counterparties to default on their obligations.
While many companies focus their modelling efforts on estimating risks related to insurance liabilities, they often ignore potentially much more severe asset risks, in part because of the presumed complexity and high expense involved in asset modelling.
URS solves this problem by offering a comprehensive set of technologies to allow assets to be modelled Quickly, Consistently, and Accurately.
- URS platforms allow asset portfolios to be created quickly by downloading parameters of each security in the portfolio from public sources with a few clicks.
- URS’s Predictable Dynamics™ Economic Scenario Generator (ESG) provides a comprehensive set of scenarios for key macroeconomic variables impacting the asset values, such as GDP Growth, Inflation Rates, Yield Curves, Exchange Rates, Stock Indexes, Bond Spreads, and Credit Rating Transition Matrices across multiple world economies and currencies.
- These scenarios are produced using a unique and exclusive Real World Emulation approach that models macroeconomic shocks and their impact on both global and local economies, which assures consistency of changes in the market values of various assets.
- The analytical power of URS’s Risk Explorer™ financial modelling suite enables the building of individual security-level asset models that produce accurate results not based on approximations or guesswork.
- An Asset Portfolio Optimizer is available to help clients find the optimal asset mix for implementing robust long-term Asset Management strategies to achieve sustainable success under ever-changing macroeconomic conditions.
“Asset modelling should not be expensive or difficult. URS technologies allow insurance companies of any size: large, medium, or small, to derive great value by accurately assessing their macroeconomic risks and implementing asset management strategies to increase their gains on investment while containing the downside risk,” said Alex Bushel, Founder and CEO of URS.