Using @RISK to Model Risk Events and Insurance Models

In this webinar, Manuel Carmona introduces sample models to discuss how some insurers, reinsurers, private firms, and government agencies use Palisade’s @RISK to negotiate insurance contracts and estimate capital reserves for contingency. From Fortune 100 companies to private consultancies, organizations use @RISK to paint a realistic picture of possible adverse scenarios such as accidents and other corporate liabilities. This allows businesses to not only buffer risks, but also identify capital thresholds for insurance purposes, allowing them to decide which risks to retain, mitigate, or transfer. In the webcast, we will explore a number of functions such as =RiskmakeInput, =RiskCompound, =RiskPoisson, =RiskBinomial, and =RiskDiscrete which are useful when building probabilistic risk registers and insurance models with @RISK and MsExcel. For example, the =RiskCompound function uses two distributions to create a single new input distribution, streamlining insurance models that must account for the frequency and severity of claims. RiskCompound simplifies models by reducing the number of input distributions in a single function. We will also introduce the subject of creating correlations between the occurrence (and/or magnitude) of some of the events in an insurance model.