Case Study: Cynametrix achieves life-insurance-integrated portfolio optimization with Palisade DecisionTools Suite

Cynametrix - Customer Case Study

Cynametrix, a Minnesota-based financial analytics consulting firm, faced the challenge of integrating life insurance (Insured Death Benefit, IDB) into traditional portfolio optimization because IDB’s return depends on the uncertain timing of death and cannot be compared easily to securities. To address this, Cynametrix used Palisade’s DecisionTools Suite (including @RISK and RISKOptimizer) to model the probabilistic relationships and bring life insurance into holistic financial analysis.

Using its proprietary MAV™ (mortality-adjusted value) method together with Palisade’s Monte Carlo simulation and optimization tools, Cynametrix ran thousands of simulations across a complex workbook (12 sheets, ~250,000 active cells) to produce distributions for IDB and securities, quantify probabilities (for example, about a 12% chance of death by year 20), and assess risk‑adjusted portfolio returns. Palisade’s software enabled Cynametrix to determine optimal allocations to IDB and among multiple insureds, demonstrate clear financial advantages to clients, and deliver a markedly more precise, measurable planning solution.

Cynametrix

Robert Danielsen

Chief Executive Officer