Joost Van Bruggen, Principal Consultant
With an aim to help insurers assess risks to solvency better, the European Union (EU) had implemented the Solvency II Directive in 2016. This necessitates insurance companies to perform periodic own risk and solvency assessment (ORSA) and publish the details of the risks they currently face along with capital adequacy. However, the steps involved in performing the mandatory calculations are quite convoluted and painstaking, and poses a major setback for both small and large insurance companies alike. Coming to the rescue of such insurance companies is MavenBlue.
A financial IT services company, MavenBlue offers cloud-based risk and finance solutions to help such insurance companies and financial institutions overcome the challenge. With a self-developed graphical processing unit (GPU) platform, the company’s solutions enable clients to perform parallel computing and speed up the cumbersome calculations, thus eliminating the need to leverage external resources and consultation to complete the tasks.
Discussing the core competencies of the company’s solutions, Joost van Bruggen, principal consultant at MavenBlue elaborates, “Unlike other solutions that only address one problem within an organisation’s financial framework, our products solve clients’ problems in a holistic manner.” And with its three cloud solutions, balance sheet management (BSM), enterprise pricing management (EPM), and economic scenario generator (ESG), MavenBlue effectively analyses data to deliver actionable insights and ensure seamless compliance with the stringent EU regulations.
Unlike other solutions that only address one problem within an organisation’s financial framework, our solutions let clients solve their problems in a holistic manner
MavenBlue’s BSM solution offers the ability to project (both deterministically and stochastically) the complete Solvency II and tax balance sheet to better assess current and future risks. In addition, BSM aids clients in performing risk analyses, capital management, strategic asset allocation studies, reviews of reinsurance programs, and more. At the same time, MavenBlue’s EPM solution helps insurance professionals effectively control the entire pricing process for general insurance products by providing actionable insights necessary to make well-informed pricing decisions. “Our EPM allows clients to unlock the hidden value of their portfolio by displaying KPIs and its impacts on both top and bottom line,” adds van Bruggen. Lastly, with the ESG offering, MavenBlue’s clients can generate many risk neutral scenarios for multiple financial instruments to be able to evaluate their insurance liabilities.
In one instance, a client of MavenBlue utilized the EPM solution to transform their bleeding portfolio into a profitable one. In another instance, MavenBlue assisted a client perform the conventionally slow and convoluted ORSA within two weeks. After the collaboration, the customer was able to create their own capital plans and gain a solid understanding of their balance sheet and its effective management. “We empowered the client by offering them the ability to perform resource-intensive tasks such as ORSA and pricing management by themselves,” states van Bruggen.
Looking ahead, MavenBlue plans to expand the functionalities offered by its products and strengthen the company’s position in the Netherlands. From a geographical standpoint, the company is planning to aid clients outside of the Netherlands and gradually gain a strong foothold in the entire Europe. To achieve this, MavenBlue is following a client input-driven roadmap that allows the firm to develop capabilities based on their need and demand in the current market. Additionally, owing to the increasing demand for tools that can optimise pensions and banking processes, MavenBlue is developing solutions tailored to help clients in that space. “Our aim is to aid insurance and financial institutions become full-fledged digitalised organisations that are less dependent on external resources and consultancy agencies,” concludes van Bruggen.