Windsor, CT, Oct. 3, 2000 — Insurance Services Office, Inc. (ISO) has expanded its consulting practice to include Dynamic Financial Analysis (DFA) by licensing SS&C Technologies, Inc.'s (Nasdaq: SSNC) Finesse 2000TM DFA system, the two companies announced today.
In addition, ISO has been designated a Preferred Service Provider for the Finesse 2000 consulting service, authorizing ISO to provide dynamic financial analysis consulting services to the insurance market. ISO will use information from its aggregated industry premium and loss database with the Finesse 2000 system to help property/casualty insurers answer strategic business questions about product pricing, capital management, reinsurance, and planning.
ISO also has developed an underwriting module that uses aggregated industry losses to quantify the variability of insured losses — that is, an insurer's underwriting risk. The ISO underwriting module can be customized to match the line of business, class and geographic mix of individual insurers. The quantified information on an insurer's underwriting risk can then be input into the Finesse 2000 system to indicate how much capital an insurer should hold, how much reinsurance it should buy, types of businesses it should underwrite, and answers to other strategic business questions.
Dynamic Financial Analysis models enable an insurer to simultaneously analyze the impact of multiple risks on its own financial performance in a changing business environment. Insurers can use DFA models to test the implications of various operating strategies, while considering the uncertainty of insurance markets, prospective loss experience, and a variety of other risks.
"ISO is committed to providing expanded consulting services to property/casualty insurers for better decision making," said Frank J. Coyne, ISO's president and chief executive officer." Along with our advanced underwriting module, SS&C Technologies' Finesse 2000 dynamic financial analysis system is an important addition to our consulting arsenal that will enable our clients to better manage their operations and capital."
"By any measure ISO is an industry leader, and we are excited that ISO has adopted our DFA model. Since most P&C companies already use ISO information, ISO is perfectly positioned to help companies implement DFA," said William C. Stone, president, chief executive officer, and chairman of the board at SS&C.
As a decision-support tool, Finesse 2000 allows underwriting and financial managers to test various business and pricing strategies under hundreds of future economic scenarios. Users can measure, compare, and visualize the degree of variability in their projected results before making a decision.
Finesse 2000's open architecture complements the new ISO underwriting module, which will enable insurers to improve their assessment and management of the risks of their enterprises.
About Insurance Services Office, Inc. (ISO)
ISO is a leading source of information, products, and services for managing property and liability risk. ISO provides statistical, actuarial, underwriting, and claims information and analyses; consulting and technical services; policy language; and information about specific locations for a broad spectrum of commercial and personal lines of insurance. In the United States and around the world, ISO serves more than 2,900 insurers and reinsurers, as well as agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies. For more information, visit ISO at www.verisk.com/iso.
About SS&C Technologies
With offices in the U.S., Canada, Europe, and Asia, SS&C is a leading provider of financial software solutions, services, and expertise to asset managers worldwide. SS&C primarily targets its products and services to large-scale, sophisticated investment enterprises that use the trading, accounting, reporting, and analysis solutions. Clients use SS&C's solutions to manage, in aggregate, more than $3 trillion in assets. Additional Company information is located at www. Ssctech.com.
Peg Berry (SS&C)