Health

Health insurance underwriting, like Property+Casualty underwriting, experiences boom and bust periods from unpredicted costs and competitive pressures. In the future, these boom and bust cycles may become more pronounced as the changing nature of regulation struggles to find the right mix of cost to benefit.

While profitability of any company is most directly linked to underwriting accuracy, today's regulatory and cost environments make it more crucial than ever to get the most out of an insurer's investment portfolio. While great emphasis is put on equity and alternative asset classes, fixed income investing is still a necessity, even for insurers that require minimal exposure to interest-rate risk. Given this exposure, the ability to outperform relevant fixed income indexes without undue risk becomes the objective. It is with this in mind that AQS developed the Portfolio Excess Return Management system (PERM).

The PERM System:

  • Produces a portfolio blueprint geared towards financial performance with a level of certainty that trial-and-error modeling cannot replicate.
  • Assures performance against a specified index and elevates client control by way of process transparency, thereby reducing speculation.
  • Provides granular and tractable portfolio solution within a market-critical timeframe.