Thanks for the encouragement Being an entrepreneur is rough with lots of ups and downs so we take what encouragement we can get
Only one question for you, the angle you are addressing looks like similar to the activities other startups do on investment management.
Can you explain where is the difference in your insurance specialization?
A word that has recently come up as we refine our story is "robo capital management". Briefly, a key to good ALM is the ability to project a complex balance sheet. This requires a number of pieces such as
- Investment strategies (with asset pricing)
- Product strategies (with product pricing)
- Statutory capital models (per country)
- Economic capital models
- Economic scenarios
On a technical level, what I believe makes us special is that we take insurers from raw data in the form of asset holdings/transactions and policy-level data straight through to reserving and risk-based capital metrics on both current and projected bases through internal economic scenario generation and prescribed ALM strategies ending with state-of-the-art business intelligence in form suitable for consumption by the ALCO. We do this in a seamless matter that I believe the users will actually enjoy (you may be shocked to see how low engagement scores are for highly-skilled actuaries and risk officers due to lack of appropriate tools and mundane error-prone manual processes), i.e. I am building the tools I wish I had.
On a business level, this means better management decisions. When you're in an ALCO and your CFO asks how to increase income, rather than kicking off weeks of frantic analysis, it can now be done on the fly, in real time even during the very same ALCO meeting. This is great for ad hoc "what if" analysis.
Also, since we focus on making things super fast, the faster you can project a balance sheet, the more projections you can make. We've been able to project complex balance sheets 100s of thousands of times in a matter of hours for our clients. This, in itself, generates a LOT of data. So when you're handed a ton of data, be it simulated or historical, you can let loose all kinds of cutting edge technology on it. For instance, we are exploring the use of machine learning/AI to develop robust ALM strategies. Hence, the recent term "robo capital management".
If you increase the return for the investment for sure you bring a benefit on profitability, so you are performing well on my Profitability kpi.
True. We are targeting profitability through productivity. As a startup, we are aggressively looking at 100x productivity compared to traditional approaches. But its not just about better investment, but a better approach to ALM.
Hope that helps! Happy to discuss offline as well