It is the duty of institutional investors, such as insurers and pension funds to have an ALM study carried out at least once every three years. Additionally, Solvency II stipulates insurers to periodically carry out an ORSA (Own Risk & Solvency Assessment) and pension funds are required by the Pensions Act to implement an Own Risk Assessment ERB (Eigen Risico Beoordeling). Triple A both advises and provides supports for implementing these regulatory requirements. Our unique collaboration with LINKS Analytics offers the possibility to integrate forward looking scenarios into these assessment processes. This creates a reliable foundation for strategic investment policy.
Forward-looking scenarios better enable you to develop a long-term vision based on realistic data, in comparison with the usual scenarios based on historical characteristics. This will strengthen your foundation for decision-making. You will gain more insight into the extent to which economic, demographic, technological, social and climate-related trends and developments affect the performance of your investment portfolio. Triple A brings expertise in actuarial processes and risk management and LINKS Analytics brings expertise in innovative data-driven solutions. There is no other comparable proposition currently on the market.
Transparent and manageable
Forward-looking scenarios make strategic investment choices transparent and manageable, providing our clients with clear tools for consultation in the boardroom and/or investment committee. By introducing specific scenarios, it becomes clear which trends and developments have an impact on the investment portfolio and the extent to which they do. You can see whether your portfolio is affected by Brexit, or by a revaluation by the Italian Credit Rating, for example.
Direct insight into impact
The advanced tooling is based on extensive, transparent data. For several relevant economic events, an extensive research paper was drawn up, in which the consequences of various aspects were mapped out. Future scenarios, including your own, can always be added to the prediction method. Triple A offers its clients the challenging opportunity to work out specific expectations in the form of workshops.
If you choose advanced forward-looking scenarios instead of conventional history-based ones, or a combination of both, the method is as follows:
Added value for reporting quality
Thanks to our exclusive collaboration with LINKS Analytics we can offer our clients unique, concrete advice based on advanced scenarios. This enables our clients to meet DNB’s reporting requirements better than ever and add value to strategic (investment) policies.
© 2023 AAA Riskfinance. All rights reserved.