Tillinghast - Towers Perrin Releases Version 1.6 of TAS:P/C, Its Actuarial Software

Tillinghast - Towers Perrin (TTP) says it has come out with a new version of its financial analysis software. TAS:P/C is a financial projection system that models the assets and liabilities of property/casualty companies in an integrated manner under economic, capital market and insurance market environments. TAS:P/C is the companion product to TAS, TTP's financial simulation software for life and health insurers.

The new version was designed to help companies make strategic decisions by producing GAAP as well as statutory financial statements, the firm says. The ability to assess financial strength using both accounting standards allows companies to reflect the way businesses are managed. Version 1.6 also allows companies to reflect the correlation of underwriting results by line of business.

"The modeling capability of Version 1.6 of TAS: P/C breaks new ground by reflecting the relationship of loss ratio movement between lines of business," says Kurt Reichle, a principal and consulting actuary of TTP. "This enhancement permits companies to reflect the fact that loss ratios of certain lines tend to move together rather than independently.

"This new version of TAS: P/C also contains new approaches for generating randomized cash flow patterns, thereby allowing additional methods to reflect timing variability as well as amount variability," notes Reichle. "It's a more complete picture of the sources of variability faced by a property/casualty insurance company. Companies can use this tool to assess their overall capital requirements, allocate capital to individual business segments, and set appropriate target rates of return. In short, it enables companies to enact a more finely honed strategy for risk management."