Actuarial Outpost
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Risk Management
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Upload your resume securely at
to be contacted when our jobs meet your skills and objectives.

Thread Tools Search this Thread Display Modes
Old 02-12-2018, 11:12 AM
snakeroberts snakeroberts is offline
Join Date: Jul 2016
College: k
Posts: 580

Originally Posted by Corn Row View Post
That would be one hell of a basic model unless you're giving the well-rounded actuarial practitioner a number of years to create something from scratch. Off the top of my head they would need to develop a robust solution for complicated reinsurance treaties and structures, non traditional asset valuation (bonds with options) and more complicated traditional assets (structured products), all sorts of accounting knowledge, potentially including tax accounting, etc. They better be familiar with distributed computing techniques unless they want their model to take days or months to complete a simulation.

Sure, someone could use @Risk to create a small model with a few attritional and large loss sources of risk, attach a quota share or simple XoL and produce some output, but they would be a decade behind other technologies. I've seen plenty of Excel-type capital models and they are not adequate.
how about the copula structure and parameters for reserve risk, current year pricing risk? From my experience the most complicated was the ESG and valuing the assets mostly bonds as noted above.

Its a cost center as you noted, not adequate, too simple, yet, if it got more complicated, no one would use it since that would devolve into everyone trying to determine the "drivers" of results on one really understanding it. JMO
Reply With Quote
Old 02-12-2018, 11:39 AM
ronaldy27's Avatar
ronaldy27 ronaldy27 is offline
Join Date: Jan 2012
Location: 'Murica
Studying for the credential
Posts: 3,065

From my experience, excel was useful for separately modelling (simple one) the parameters used in the ECM, but that's pretty much it.

Excel is great for being a supplemental tool for the big ECM software. Ofc, there are better alternatives.
Spoiler - for size:

Reply With Quote
Old 03-10-2018, 09:10 PM
Anxiousele's Avatar
Anxiousele Anxiousele is offline
Join Date: Sep 2015
Posts: 124

Originally Posted by jas66Kent View Post
You can't do this sort of thing in excel.

Excel was only ever meant for mild-moderate financial modelling.

Please stop abusing it.

I can see doing a basic trace of how the model works for testing purposes but anything beyond that is too much.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 02:07 PM.

Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.16718 seconds with 11 queries