Mission-Critical Financial Insurance Services in the Cloud

Joost den Dikkenboer, Nationale-Nederlanden & Theo van Drimmelen, Bitbrains IT Services

Risk management is an important function for insurance companies. A risk is, for example, an unbalance between assets (premiums) and liabilities (payouts). Several parameters such as mortality tables, interest rates and other market specific parameters influence risk management. As they are not known upfront, several possible scenarios with different values for these parameters are simulated to gain insight in the position of the insurer in the future.

These models and associated scenarios are run by actuaries on IT systems. Most models are based on Monte Carlo type simulations, executed using a range of industry-specific software packages. Nationale Nederlanden (NN), a part of the ING insurance a user of the MoSes (tm) risk software, was challenged with an increasing workload in their regular risk production combined with SolvencyII regulations and an eminent IPO as the bank and insurance division of ING are separate according to EU regulations. These elements increased the demand of risks management production.

NN needed a flexible, cost effective model to deal with new demand, Bitbrains IT designed a hybrid cloud setup with a basic footprint of 586 cores as baseline and a peak volume of 1016 cores. The advanced and automated cloud setup has allowed for very quick lead time, flexible capacity, high performance risk calculations, thus providing NN with the risk management abilities they aimed for.