Ultimate Risk Solutions uses the decay of radioactive material to help calculate loss reserving
Nuclear physics and loss reserves are not obvious bedfellows, but Ultimate Risk Solutions (URS) has compared the payout of insured losses and the decay of radioactive material to calculate the amount and volatility of companies' loss reserves in its new product, Res-Solver.
Re/insurers must estimate the amount of loss reserves but, despite becoming an increasingly important issue, valuing reserve volatility has been problematic. Res-Solver is a powerful and flexible stochastic reserving software package for the re/insurance industry.
Alex Bushel, CEO of URS, said: "Res-Solver saves an enormous amount of time and effort when making reserve analyses. Its modelling methodology is sophisticated, yet understandable and large corporate models with many loss development triangles are easy to create."
