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Depending on the project, it can take days for insurers and reinsurers to run large capital models needed for risk management assessments, which cost not just time, but money. 

Ultimate Risk Solutions has released its Risk Explorer software, called the Dynamic Financial Analysis model, which can reduce processing time for large capital models from hours to minutes with new cloud computing functionality, according to Alex Bushel, founder and CEO at Ultimate Risk Solutions.

“Utilizing commercially available cloud computing, Risk Explorer(TM) will speed processing dramatically, improve efficiency and reduce cost for businesses that require large models,” Bushel said in a statement.

Risk Explorer is designed to allow corporate decision makers to identify and quantify all the risks a company faces. By adding a cloud computing functionality, Bushel said it reduced the time required to process 50,000 simulations of a very large model from seven hours to five minutes during tests runs.

Using the Risk Explorer platform, models of any size can be run at “minimal incremental cost” within minutes, he added. Insurers and reinsurers in the U.S., U.K. and across Europe increasingly build larger and larger models that take longer and longer to run, even on multiple processors.

“In some cases, the long run times have handicapped or made these large models unusable as effective decision-making tools,” Bushel added. “Through cloud computing on Risk Explorer, companies can realize the full benefits of Dynamic Financial Analysis without the cost and lengthy processing times required today.”

Among other analytical capabilities, Risk Explorer provides portfolio risk management, economic capital modeling and allocation, asset-liability matching, risk pricing and business strategy evaluation along with a full corporate view of risks.

Last year, J.P. Morgan licensed the Risk Explorer software to be used in connection with J.P. Morgan’s asset management services to clients in the property/casualty insurance industry.