OOliba Modules

A comprehensive list of ready made actuarial models

Various off-the-shelf modules are available, supporting different actuarial domains and applications, including:

OOliba Standard Formula

A fast, cost-effective way to implement Solvency II requirements is the OOliba Standard Formula.  This model calculates the SCR (Solvency Capital Required), incorporating multi-source data, based on the standard formula and providing other functionalities (calculations of USP and Risk Margin, counterparty default risk,etc).

In addition OOliba provides full traceability and auditability of the calculations, both representing fundamental Solvency II requirements.

The diagram below gives an overview of the OOliba Standard Model.

  • The blue blocks represent raw data required for the calculation as provided by the insurer.  OOliba can be of assistance for reworking the data.
  • The light blue blocks represent input data to the OOliba Standard Model.  These data are delivered by the insurer in the required fixed format. The exact list and data format are discussed in the analysis phase of the project.  The data may even be created by the Risk Intelligence OOliba module based on the raw data from the insurer.
  • The orange blocks represent calculation algorithms, as specified in the European legislation. The Market, Default and Intangibles domains are mandatory.  The domains Health, Life and Non-Life are business dependent.
  • The grey blocks represent the complementary calculations (adjustments, operational risk,etc).
  • The black blocks represent the final results delivered to the controlling authorities.

OOliba Market Risk Model (OMR)

Solvency II demands insurers to have a clear insight in the risk embedded in the assets portfolio. The OOliba Market Risk Model offers the following functionality:

  • Dashboards with multi-criteria segmentation and multi-currency output
  • Assets valuation and market shocks on
    • Bonds
    • Equity
    • Property
    • Cash
    • Funds (UCITS)
    • Structured products and derivatives
  • Repricing for simple derivatives
    • Standard approach (49%)
    • Approach by sensitivity proxy
    • Possibility to integrate external valuations
  • Configurable rate curves
  • Reconciliation of Solvency II scope against balance sheet
  • Fund look-through
  • Concentration risk calculation (including Funds (n first exposures approach))
  • Flexible data input  (clean / dirty price, defaulting of non-provided data using  Solvency II prudential criteria,etc.)
  • Various output formats

Non Life and Health Best Estimates

Determining a company’s reserve for future claims payments and future premiums, as well as for estimating the risk present in the claims reserves run-off, is essential in the financial management for any insurer.

Our model supports the most modern flow stochastic and deterministic projection techniques.

Own Risk And Solvency Assessment (ORSA)

The Own Risk and Solvency Assessment (ORSA) is the main engine for embedding Solvency II into the insurance business.

ORSA requires a prospective view of risks and their implications at the heart of decision-making actions within insurance companies.  This also means the insurer needs to have processes in place for identifying and quantifying the risks in a coherent framework.  In future audits, insurers will have to demonstrate that ORSA influences the way their business is run day-to-day. They need to show that their risk management is not just a technical box-ticking exercise.

As the calculation of the Solvency Capital Requirement (SCR) gives companies the regulatory capital amount they are required to hold, the formulaic nature does not reflect individual circumstances.
ORSA allows for individual interpretation of risk exposures and risk appetite, providing a much firmer base for decision-making. Since supervisors will want to see an internal assessment that reflects specific risks based on company data, the SCR standard formula is clearly inappropriate for ORSA.

Our ORSA model computes financial results and capital needs of the undertaking over a multi-year period based on financial and growth parameters. The model takes into account best estimate and different shock assumptions.

OOliba Belgian Worker Compensation (BWC) Model

Overview

The OOliba Belgian Worker Compensation (BWC) model allows companies to model the evolution of claims related to permanent disability and the cash flows that will result from it, based on the Belgian legislation and company specific input.

The model takes into account the different stages in processing a claim, all-possible types of beneficiaries and the options as well as the events/evolutions that occur in the course of its lifecycle.

The model is built with the explicit purpose of meeting the Solvency II criteria for SLT health. As such it is a non-stochastic model, but when combined with economic scenarios, it can be easily converted into a stochastic model.

 

Thanks to the transparency and flexibility of the OOliba tool, the model can be easily customized to the specific features/preferences of the company.

Product Features

The OOliba BWC model supports the following product features:

  • 5 types of beneficiaries
  • Different claims-generations (differences in reserving parameters and the legal development of the claim based on the claim date.)
  • Transition possibilities between 5 classes of permanent disability
  • Parameterized transition dates
  • Explicit modelling of the following 5 stages:
    • Before consolidation
    • Consolidation
    • Homologation
    • End revision period
    • Third capital
  • Pensioning
  • Inflation and surplus-inflation
  • Mortality surplus for victims and spouses
  • Different possible mortality tables (experience, tariff, prospective)
  • Different possible payments: payments to FAT/FAO, capital payments, annuities, and prostheses.
  • “Baremas” and tariffs

Output Features

The OOliba BWC model supports the following output features:

  • Annuities, reserves and costs that can be split according to the different classes of beneficiaries, claims generations, claims stages, FAT/non-FAT and lump sum
  • The period (monthly quarterly or yearly) can be selected.
  • Best estimate, and different shocks based on standard model.

Dynamic Features

The OOliba BWC model supports the following dynamic features:

  • All the input assumptions can be easily made dynamic, either by reading from a table calculated in a higher level or through stochastic generation of the assumption.

Summary

  • The OOliba BWC model is perfectly suited to calculate the different inputs needed for the standard model in the Health SLT module.
  • The OOliba BWC follows the specific rules and particularities that shaped the workers compensation product in Belgium over the years.
  • The OOliba BWC is easily adaptable and configurable to the needs and particularities of the company.
  • The OOliba BWC can be easily turned into a part of a dynamic internal model.

QRTs

The OOliba QRT module is able to generate the EIOPA QRTs in both Excel and XBRL formats.

The generation of QRTs is controlled by a configuration file indicating the types of QRTs to be produced.  OOliba supports solo,group, annual and quarterly reports, and you can indicate which individual QRTs are required.

QRT parameter selection

QRT parameter selection

XBRL

The generation of the XBRL file includes execution of the validation rules embedded in the taxonomy

XBRL Validation

XBRL Validation