Risk Neutral ScenariosSupport the valuation of optionality in insurance liabilities
The Ortec Finance stochastic economic and asset return scenarios are available as real world scenarios for investment and risk management purposes, and as risk neutral (or arbitrage free) scenarios for valuation purposes. The Ortec Finance risk neutral scenarios enable actuaries and finance professionals to perform market-consistent valuations of optionality in insurance liabilities and of financial contingent claims more generally.
Ortec Finance provides risk neutral scenarios that are highly accurate for any prevailing market conditions, have good convergence properties by using Empirical Martingale Simulation (EMS) techniques and support reliable and stable valuations over time by using robust models. The scenarios are available for the end of every month, for horizons from one month to many decades and delivered through the ESG software or a scenario file service.