Development of a digital insurance calculator
The Allvisa Consult project involves the development of two state-of-the-art core applications, specifically designed for the insurance industry:
Coverage Capital Calculator
This application enables pension funds to accurately calculate the required coverage capital for future pension payments. The DK calculator determines how much capital an institution needs to set aside to fulfill its long-term commitments to its insured members.
It uses statistical data such as mortality rates, gender, age, and other factors. Data management is seamless, with input and output handled through dynamic Excel sheets, simplifying the process considerably.
For example, the application can calculate for a 25-year-old married man both the probability of his death in each year of his life and the resulting payments, such as widow or child pensions. The software takes into account a wide range of scenarios, including the man’s life expectancy, the duration of claims by his dependents, and other relevant factors.
From these calculations, a complex network of probabilities and costs emerges, allowing the pension fund to precisely determine the liquidity required for each insured individual. This ensures that all potential obligations are reliably covered.
Highly configurable and efficient
The coverage capital calculator offers flexible configuration options, allowing users to customize parameters such as the life expectancy statistics used or the weighting of factors like the probability of disability.
The application can also process large datasets with tens of thousands of insured individuals. Thanks to optimized algorithms and parallel computations, it delivers fast and efficient results, even with large amounts of data.
Intelligent process support with real-time feedback
During calculation, the application provides continuous real-time feedback on progress and provides helpful warnings and tips. This proactive communication enables users to immediately identify and correct potential discrepancies in input data. Even with incomplete inputs, the software completes the calculations and generates an initial result and a list of necessary adjustments so that decisions can be made promptly.
Insurance Services (IAS)
Pension providers are required by law to charge certain service costs. This functionality was integrated into the Allvisa Consult application to enable institutions to plan their insurance services more efficiently and precisely.
Efficiency through reuse of calculation bases
The calculation of service costs is based on the probabilities and inventory figures determined in the DK calculator. As a result of this efficient reuse, development costs could be reduced and synergies could be exploited. Data input and output are also carried out using Excel tables, which simplifies handling and supports integration into existing systems.
Transparency and traceability
In order to ensure a deep insight into the calculation processes, the application offers the option of outputting individual cases separately. This provides access to detailed interim values and calculation details, which are essential for well-founded analyses and decisions.
Past calculations are historicized in the application. A clear history makes it possible to understand at any time which calculations were carried out with which input parameters for which customers. Similar to the DK computer, the calculation is completed even if values are missing in order to provide an initial result and a complete list of input information and assumptions made.