JERSEY CITY, N.J., July 20, 2020 — Verisk (Nasdaq:VRSK), a leading data analytics provider, today announced the release of Life Risk Navigator™, an innovative, cloud-based stochastic risk modeling platform that offers in-depth portfolio analytics which can enhance risk selection, quantify changes in mortality rate, improve hedging strategies, and drive better financial decision-making. The cutting-edge analytics provided by Life Risk Navigator are driven by Verisk’s Life Risk Models, a comprehensive set of probabilistic risk models that simulate mortality trends, causes of death, and excess mortality events at a granular level.
“As the life insurance industry undergoes a digital transformation, the demand for modern analytics platforms has grown significantly,” said Maroun Mourad, president, global underwriting at Verisk. “Life Risk Navigator brings together a robust modeling suite and allows organizations to streamline their pricing, ERM, and portfolio optimization workflows into a single platform.”
The web-based Life Risk Navigator was built to consider the workflows of life insurers, annuity providers, and reinsurers. It enables insights across a full probability distribution of risk, capturing uncertainty and offering insight into correlations between policies and portfolios. This full range of tail risk metrics enables portfolio benchmarking, optimization, and Solvency II modeling. By capturing trend risk at an individual level, regardless of the granularity of data inputs, the platform diminishes adverse selection and can enhance profitability through greater pricing precision.
Verisk’s Life Risk Models are now available in the Life Risk Navigator platform. The comprehensive set of models allow users to access targeted analytics in a single tool to make efficient risk selections. The Mortality Projection Model, part of the risk model set, provides mortality assessments categorized by age, sex, and cause of death.
The model simulates causes of death for each age and sex specifically, considering socioeconomic and related risk factors and accounting for medical advancements and changing lifestyles informed by peer-reviewed epidemiological studies and statistics from relevant ministries and departments of health. Changes in mortality risk based on associated biomedical factors are explicitly modeled—such as smoking status, diabetes, body mass index—incorporating not just the overall trends in mortality, but the weighted contribution of each risk factor to potential mortality improvement for each cause of death over time.
“Backed by AIR Worldwide, a trusted leader in risk modeling and analytics, our Life Risk Models go beyond traditional actuarial methods to explicitly capture dynamic mortality and morbidity risk associated with changing habits and lifestyles, as well as excess mortality events,” continued Mourad. “By incorporating this detailed understanding of the drivers of mortality risk and possible trends over a policy’s lifecycle, life insurers and annuity providers can make better risk management decisions that align with strategic goals.”
To support life insurers across the policy life cycle, Verisk has developed a suite of solutions that apply advanced analytics, automation, and machine learning to existing and emerging data sources. The solutions are designed to transform current workflows in life insurance underwriting, life and pension analytics, claim insights, compliance and fraud detection, and actuarial and portfolio modeling. To learn more about Verisk’s life insurance solutions, visit verisk.com/life.
Verisk (Nasdaq:VRSK) provides predictive analytics and decision-support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social, and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook, and YouTube.
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