Case Study: UNIQA Group achieves integrated risk management and faster time-to-market for complex structured products with SimCorp’s XpressInstruments

System support for complex and non-standardized instruments

UNIQA Group, a leading insurance group managing EUR 29.42 billion (end 2015), faced growing operational and risk-management challenges as the market for structured products and exotic derivatives expanded amid a persistent low‑interest environment. Prior reliance on a legacy third‑party pricing add‑on with weekly imports meant interest‑rate sensitivities and pricing were not consolidated in the main system, preventing effective, company‑wide risk management and increasing operational risk. SimCorp (using SimCorp Dimension together with XpressInstruments) was engaged to address these issues.

SimCorp implemented XpressInstruments inside SimCorp Dimension to provide native support for complex, non‑standardized instruments, creating about 30 product templates and migrating more than 65 live structures. The integrated solution automated pricing, risk and settlement across the front‑to‑back chain, dramatically reduced operational risk and time‑to‑market for new products, and enabled daily, consolidated market‑risk and Solvency Capital Requirement (SCR) calculations. As a result, UNIQA can now manage structured products in one consistent system, self‑onboard new structures more quickly, and achieve more accurate risk measurement and lower capital requirements.

UNIQA Group

Erich Kruschitz

Head of Market Risk and Regulator Management