The nexxbiz Integrated Insurance Platform (IIP)
nexxbiz Integrated Insurance Platform digitizes the modeling & reporting processes for life, pension, and disability insurers. The platform consists of four independent modules: the data model, calculation engine, reporting module, and process controller. All of these modules are embedded in a BPM workflow manager and are scalable in the cloud.
One calculation engine for administration and actuarial reporting
The calculation engine within nexxbiz IIP for actuarial reporting is the same as nexxbiz uses in the nexxbiz insurance policy administration. Insurance clients using the nexxbiz solution for their policy administration as well as their actuarial reporting process have the unique benefit of one calculation engine that is used for both purposes assuring no differences anymore between policy administration and actuarial reporting. Th additional benefit is that the products only have to be implemented once.
nexxbiz is not just a technology partner, we are your partner in revolutionizing insurance offering modern IT knowledge, local domain expertise, and a perfect balance of personal involvement and robust capacity. Our highly configurable platform let you develop business applications that make your organization agile and less IT-dependent. We simplify navigating governance requirements, ensuring compliance seamlessly.
Calculation Engine
The calculation engine provides an environment to build extremely fast actuarial projection models for a wide range of insurance products. The calculation engine allows the user to work with predefined models, and to create its own models to project insurance liabilities for their portfolios in a user friendly way. These models can be engineered to simultaneously project the cash flows for all the relevant reporting regimes for the user, and the key risk metrics.
Reporting Module
The reporting module provides the user flexibility to both present the projection results at an executive summary level, and provide the option to drill down to the lowest level of granularity to cater to the needs of actuaries/business analysts.
Process Controller
The process controller automates the entire process: from input data to the production of the report. It ensures that each policy is linked to the relevant assumptions and projection settings in the data model before it is automatically fed into the calculation engine. The projection results are stored in the data model, after which a report is generated based on those results.
Data Model
At the heart of the platform lies a robust data model, in which al necessary input data is combined, and all the output data is stored in an efficient way. The data platform is flexible with regard to data sources, as it can work with any common type of database, spreadsheet or other data source.
Traditional processes are at risk
Considering the challenges above, any traditional actuarial modeling & reporting processes are at risk of becoming too slow and uncontrollable to cope with modern requirements. If these processes evolved from less demanding processes, not keeping all of today’s requirements in mind, it is likely that maintenance and runtime will at one point render these processes
unsuitable. These processes often rely on suboptimal data handling, many sequential calculation runs, and many manual proceedings in controlling the process and preparing the reports. This makes them prone to (manual) errors and delays in processing time, possibly resulting in untimely delivery of the necessary reports. Today’s requirements call for a harmonized and controlled approach that leverages on integration, optimization, and automation.
Regulatory & accounting change compel actuaries to innovate
With the introduction of Solvency II and IFRS 17, both the internal and external actuarial reporting requirements have changed tremendously. Insurance companies have to report more frequently than before, and have to disclose a growing amount of information in doing so. This introduces several challenges:
Data challenge
The amount of necessary input data is increasing. More and more (historic) policy information needs to be processed, and several sets of assumptions and sensitivities are needed to cope with today’s requirements. Insurance companies need to be in full control of this data to be able to perform the right calculations and to process their output.
Modeling challenge
To calculate all reporting metrics, the number of required models and calculation runs also increases. Insurance companies need to make sure that all calculations are consistent, and that the reporting process is not hindered by manual inefficiencies and unnecessary long calculation times.
Reporting challenge
The number of different external and internal reports to be made based on the calculations’ output is also growing. It is important that these reports are complete, consistent, thoroughly reviewed and timely available to external and internal stakeholders.
Main benefits of nexxbiz IIP
Efficient & accurate
The platform leverages on smart actuarial and programming techniques for optimal performance. The automated workflow makes it less prone to manual errors, allows actuaries more time to analyse and interpret results, and shortens the overall process runtime.
Digital
The platform offers a digital environment to cope with today’s and tomorrow’s business & reporting requirements. Due to its flexible design the solution is naturally scalable in the cloud.
Affordable
The platform provides an affordable alternative to expensive modelling suites and costly internal development options. The implementation costs and its relatively low license fees may be financed by the potential release of prudency in the risk margin and decrease in the reserve for operational expenses, due to efficiency gains.
Features Highlights
Actuarial modelling
―Full assumption driven projections of insurance liabilities and the key risk metrics (i.e. underwriting SCR, risk margin, risk adjustment).
―Simultaneous projections for Solvency II, IFRS 17, and Local GAAP, ensuring consistency between them.
―Parallel projections for sensitivities and multiple valuation dates.
―Policy-by-policy projections on a monthly basis.
―Thorough use of recursion techniques, allowing for the exact calculation of the risk margin, which typically leads to a decrease of the risk margin and release of capital.
―Possibility to attribute experience results to their sources, based on observed portfolio mutations.
Actuarial reporting
―Customisable reports for regulatory and management reporting.
―Reports can be produced for any valuation date, and can include both projection results and information about the policies and assumptions.
―Results can be rolled up and drilled down to any level of granularity, along any desired axis (product type, policy year, profitability, etc.).
―‘Auditor selected’ function to show policy specific projections for selected policies, that can be used for sample testing.
―Analysis of change that fully attributes movements to sources.
―Automated checks, balances, and controls in the process and reports.
Technology
―Python based platform that allows access to the source code.
―Alternative to commercial suites or inhouse development: can leverage on current models and knowledge within the organisation.
―Easy to use: model portfolios intuitively using the standard models on the platform, and customise where necessary.
―Can work with data in any common database or spreadsheet format, and can be connected to other (reporting) tools as well.
―Scalable and flexible data handling, allowing for working with large volumes of data, and swift adaption of changes in external and internal requirements.
―Fast calculations by using machine language and multicore processing for optimal performance on local machines. Due to a cloud native design scaling in the cloud comes naturally and efficient.
―Can (gradually) be implemented.