Korra launches Deal Analysis to help ILS investors evaluate risk and transaction economics

Korra, the Software-as-a-Service (SaaS) platform from Ledger Investing, has announced that it has launched Korra Deal Analysis, an application that’s expected to help market participants analyse the quantitative and qualitative aspects of casualty, non-catastrophe property, and specialty reinsurance and ILS opportunities.

According to the announcement, Korra’s Deal Analysis application will enable ceding insurers, reinsurers, managing general agents (MGAs), fronting carriers, and the reinsurance brokers who represent them to structure, price, and publish formal risk and investment reports for their own marketing purposes.

Most relevant to Artemis’ readers, however, is where Korra notes that the platform will allow insurance-linked securities investors and collateralized reinsurers to use the same analytical framework to evaluate reinsurance submissions on economic terms like IRR and MOIC instead of accounting metrics like combined ratio.

“They can assess risk reliably by using transparent, back-tested stochastic models that answer important questions about the probability of downside scenarios,” Korra explained.

Kyle Safran, Head of Data Science at Korra, commented: “Structuring and evaluating an ILS transaction requires understanding not only what losses may look like, but how they develop over time, flow through the deal structure, and affect each party’s economics.

Safran continued: “Deal Analysis brings those pieces together — loss modeling, reinsurance structure, collateral requirements, capital structure, and investor returns — in a transparent modeling environment where reinsurance brokers and capital providers can test assumptions, compare alternative structures, and understand the distribution of potential outcomes. This gives teams an iterative and explainable way to price risk, structure transactions, and assess deal viability.”

Additionally, Korra explained that its Deal Analysis application leverages AI technology to extract essential information and historical loss triangle data from reinsurance submissions, which the organisation asserts facilitates teams to quickly review and organise the historical experience needed for comprehensive analysis.

Korra also added that historical performance may be examined through meaningful visualisation methods utilising a proprietary graphics library, and users can also gain access to the company’s extensive database of industry performance metrics to compare and blend data.

“From there, teams can use that historical data to model prospective losses using a variety of methods, from traditional actuarial techniques to Korra’s modern, hierarchical Bayesian models that provide full probability distributions of future loss ratios. Korra’s Bayesian loss models are based on published, peer-reviewed methodologies, and are designed to work with the thin historical data often provided by MGAs by incorporating priors informed by industry data,” Korra further explained.

The firm continued: “After modeling losses, users can test alternative transaction structures and model investors’ MOIC, and IRR. Analysis and forecasted results can then be packaged into investor-ready reports, giving teams a consistent way to communicate the assumptions, economics and potential outcomes of a transaction.”

Korra also clarified that once a deal goes live, both the data and insights generated during its initial evaluation are carried forward in the platform and then made available as claims develop, thereby facilitating sustained monitoring of deal and portfolio performance alongside continuous reassessment of the transaction structure, while simultaneously enabling more strategically informed decisions regarding contract renewal.

Meredith Barnes-Cook, Senior Principal at Datos Insights, said: “As alternative capital takes a larger share of reinsurance, brokers and investors need better tools to evaluate risk and transaction economics,” Platforms that bring actuarial modeling, deal structuring, and investor reporting into one environment make these transactions easier to assess, compare, and explain.”

Umair Rasool, General Manager of Korra, added: “Risk originators and capital providers are ultimately looking at the same underlying risk from different perspectives, yet much of the analysis still happens through disconnected spreadsheets, static reports and manual workflows.

“Deal Analysis gives both sides a more transparent and repeatable way to model risk, evaluate transaction economics and align on deal terms. By bringing those workflows together on the Korra platform, we’re creating a stronger analytical foundation for connecting risk with capital.”