Case Study: Alesco optimizes risk financing and insurance strategies with Lumivero’s @RISK software

Alesco Determines Optimum Risk Financing and Insurance Strategies with @Risk Analysis Software

Alesco Risk Management Services Limited, an independent energy insurance broker, needed to help its clients determine the optimal strategies for financing risk and transferring it to insurance markets. To tackle this challenge, Alesco turned to Lumivero and utilized its @RISK analysis software to model future insurance losses and evaluate complex alternative insurance structures.

Lumivero's @RISK software enabled Alesco to run Monte Carlo simulations directly in Excel to forecast long-run average losses and their volatility. This solution allowed Alesco to model various reinsurance structures and advise clients on the optimal program, balancing premium costs with their risk appetite and capital requirements. As a result, clients could make informed decisions to maximize retained earnings at an acceptable level of risk, ultimately influencing their corporate, financial, and legal strategies.

Alesco

Derek Thrumble

Partner