Miamisburg, Ohio — Enterprise data warehouse and analytics technology provider Teradata and enterprise risk management (ERM) software provider DFA Capital Management, Purchase, N.Y., announced the availability of their new hardware and software platform, ADVISE-Enterprise Risk Intelligence (ADVISE-ERI) for the insurance and financial services industries.
This next generation ERM product is designed to provide a more comprehensive way of measuring and managing risk and capital than has been previously available in the market.
"The integration of DFA's risk modeling and economic scenario generator capabilities with Teradata's data warehouse technology and consulting services create a powerful tool with unprecedented capabilities," says Jim Donovan, VP, Global Industry Solutions, Teradata Corp., Miamisburg, Ohio. "Not only will ADVISE-ERI allow executives to make better strategic decisions to identify risk faster, but executives can now allocate capital and resources with greater precision supported by more detailed data."
Designed for property/casualty, life and annuity sectors of the insurance industry, the combined technology of DFA and Teradata will provide insurers with the capability to more accurately measure and manage risk and capital. This technology also is the first to address backtesting, a method that uses relevant historical data in order to demonstrate a risk strategy's effectiveness to rating agencies. ADVISE-ERI assesses risk exposure across each business function and across the entire organization. Insurers can now start small and scale without limits, according to the level of data granularity required for analysis. Additionally, the technology meets long-term auditability requirements and is fully transparent to help insurers meet regulatory and rating criteria.
"This new technology will play a key role in helping insurance companies better manage risk, which is especially important, given what's been happening in the economy," said Lisa Cash, executive vice president sales and marketing at DFA Capital Management.
"Compared to traditional ERM systems currently on the market, the next generation capabilities of ADVISE-ERI give insurers the ability to model their business much more accurately. It is focused on letting risk managers and actuaries in the property and casualty, life, and annuity sectors thoroughly analyze their complete organizations by simulating thousands of risk scenarios that could have a potential impact on the business. What's especially important is that the technology can be leveraged across all business functions including asset and liability management, performance management, strategic planning, reinsurance optimization, and capital allocation for improved risk identification and management."
ADVISE-ERI leverages the advanced risk management capabilities of DFA's stochastic modeling platform, ADVISE and GEMS, its economic scenario generator, with the power of Teradata 12.0 Database and the Teradata Purpose-Built platform family for data warehousing.
According to Cash, the combination of the two companies' technology ultimately will help companies to increase the return on capital, develop focused strategies for funding balance sheets and optimize the use of reinsurance. In addition, it will help companies to preserve or improve ratings, crucial to maintaining or increasing market share, by achieving the transparency required by regulatory and rating agencies.
In May 2007, Teradata and DFA announced a partnership to bring an enterprise risk and capital management solution to the insurance industry. The ADVISE-ERI product is the latest version of that solution and is now available.
Source: Business Wire
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