Sensitivity Analysis: operations and techniques

The new IFRS17 standard imposes the insurance industry to disclose different results for each approved scenario, which enables shareholders and analysts to compare sensitivities of different insurers. 

However, to satisfy the regulatory requirement of disclosing sensitivities, one must perform calculations for dozens of scenarios, for example a change in mortality, longevity, inflation, or yield curve that deviates from the Best Estimate. And this can be a laborious task. 

The Systemorph standard solution helps you to get rid of redundancy and data repetition; and ensure less user time is burnt. 

Our concept tackles scenarios by efficient partitioning of data and employing so-called “relaxed queries” to avoid mixing and repetitiveness. Most importantly, the scenario set can easily be extended and customized.  

What would you like to see next? Let us know the challenges you’re facing or otherIFRS17 topics you’re interested in and we’ll get right onto making the educational material.