Global professional services company
"The insurance industry has been struggling with how to accurately understand all risk exposures in real time while offering products that serve consumers' needs. A lack of robust, real-time modeling tools has contributed to management's struggle to fully understand and measure risk exposure," said Steve Bochanski, a senior consultant in Towers Watson's Risk and Financial Services consulting group. "We believe our proprietary RSS modeling technique will provide insurers and other financial services companies with a faster and smarter approach."
The RSS modeling technique, which is proprietary to Towers Watson, uses statistical sampling to accurately measure changes in risk metrics while producing dramatic reductions in run time, says the company. Long used in other industries, statistical sampling is new to the insurance industry, said the firm.
Bochanski say that the RSS technique offers key benefits over other methods that make it the best option available. "The fact that sampling is already widely used makes this approach easy to understand and explain to users, senior management and external constituencies," said Bochanski. "In addition, with RSS, the user has full control over the balance of speed and precision, and it works with insurers' existing models and actuarial software."
The inventor of the RSS method, Dr. Jay Vadiveloo, a senior consultant at Towers Watson and professor at the University of Connecticut, believes that RSS is part of the next generation of modeling techniques, “one that will ultimately simplify the financial modeling process for users."
