Bermuda based insurance and reinsurance focused software house Treefrog Consulting Ltd. has announced an expansion to its ILS and reinsurance deal pricing and roll-up platform Foundation, adding a Portfolio Module, as well as other ILS specific features.
Treefrog launched its Foundation software platform earlier this year, aiming to deliver users a powerful pricing, risk and portfolio management solution for ILS and reinsurance transactions.
Tangency Capital, the insurance-linked securities (ILS) investment fund manager focused on quota share reinsurance business became the first full user of the Foundation platform on launch.
Since then, Treefrog has been working on expanding the Foundation product and making it increasingly useful to reinsurance and insurance-linked securities (ILS) market users.
Now, the company has announced the release of a fully-fledged portfolio management tool for the software.
Dmitry Mnushkin, president of Treefrog explained, “Since we won Bermuda’s Technology Innovation award, we have been focused on completing the second pillar of our cloud-based underwriting platform – the ability to roll up deals into portfolios. We’ve created a thoughtfully designed, robust, and highly scalable capability and are excited to announce the production launch of our Portfolio Module.”
The Portfolio Module enables Foundation users to roll-up deals they have already entered in the software’s Deal module, providing deep insights into their overall risk exposure, helping them plan portfolio optimisation strategies and to explore what-if scenarios, all helping them to identify where capital can be deployed most efficiently.
Mnushkin explained what this means for Foundation customers, “What really excites me about Portfolio is the capability and flexibility we give our customers to create and enter their custom metrics calculations. You can do so much more than simply returning losses at various return periods. For example, you can break out your losses or profits by inward versus outward flows, calculate trust costs, collateral, investment income, profit commissions and reinstatement premiums. The list is endless because it is driven by the imagination of our customers. As with our Deal module, users have full ability to write their own custom calculation and process logic for how each result is to be calculated and Foundation does the heavy lifting, taking just a few minutes to complete the calculations for an entire portfolio.”
Adding that Foundation’s portfolio management tool is differentiated because, “Most off-the-shelf tools currently available are very limited in what data they can ingest and what outputs they can create.”
“Foundation was built to be the Microsoft Excel of underwriting platforms – just because two clients have it does not mean what they choose to create with it will look anything alike.
“Foundation allows clients to innovate within the platform to a degree that was only possible previously with completely custom software development. Foundation provides this capability at a fraction of the cost. Within a month of purchasing Foundation, clients can expect to be fully utilizing this enterprise-grade system to track, analyze and price natural catastrophe business on a standalone or marginal basis,” Mnushkin further explained.
The latest Foundation release also brings new features specifically for ILS management companies and users, including the ability to store an unlimited number of additional data points about each deal such as claims, loss reserves and various trust/account fees and hurdles.
Foundation also now features a database linked to Foundation data, but completely under the control of the client, enabling customers to design complex queries and reports that run directly against this.
Mnushkin explains the importance of this as, “Exposing our data structure to our clients gives them full power to extract anything they want from the system at any time. Unlike systems of the past, Foundation provides this secure simple interface to all of the stored and calculated data. This enables our customers to design and develop their own solutions and integrations independently from us. We think this level of autonomy speaks to our desire to be true partners to our customers by keeping their costs down while maximizing efficiency and delivering the results they need to make decisions.
“I strongly feel that Foundation’s time has come. Our customers value efficiency and cost effectiveness and realize that building their own platforms is no longer economical or strategic. We have designed the system from the outset to combine the best elements of custom high-performance software with out-of-the-box functionality. With this release we have closed the loop on a critical capability the industry has been waiting for. Running a portfolio roll up over hours or days is a thing of the past.
“Now it’s back to the grindstone to continue enhancing the application, work with our customers to streamline and improve every element and plan out our next Module! We consider clients our long-term business partners, want them to be successful and will do everything possible to make sure Foundation exceeds their expectations.”