Dynamic Hedging Products and Services

Nexus Risk Management helps clients develop best practices dynamic hedging capabilities. We believe that companies that are serious about offering products with equity-based insurance guarantees should have the in-house expertise to manage this business.

To help insurers develop the requisite expertise and execute their own dynamic hedging programs, we provide a full suite of customized dynamic hedging tools and applications, expert advice and in-house training.

Customized Software

Nexus Risk Management delivers software applications for companies based on their unique needs and specifications. We will provide you with software tools that are customized to your liabilities and seamlessly integrated with your existing systems. After the tools are built and thoroughly tested, you will own the software along with the source code and user documentation.

Expert Advice

Approaches that are not tailored to address company-specific needs can be suboptimal. By following a principled based approach to risk management, we ensure that strategies are formulated to achieve our clients' financial objectives.

Nexus Risk Management understands that risk management should be sensitive to both the internal and external environment. We also recognize that different financial objectives, risk appetite and risk tolerance may call for different strategies. By following a disciplined approach to risk management, we can identify the important questions and help you define the right answers.

Clients can benefit from our experience and expertise in the following areas

  • Product design risk review
  • Risk-return quantification
  • Formulating and evaluating of risk management strategies
  • Implementation of a trading and monitoring process

In-house Training

Nexus Risk Management has conducted training courses on dynamic hedging worldwide with various professional bodies, rating agencies, central banks and industry associations. We have also conducted customized in-house training programs for insurers, reinsurers, rating agencies and regulators. Nexus Risk Management can create customized corporate training programs for your company. This can be a powerful way to enhance the risk management culture at your organization and keep up to date with latest industry trends and developments in risk management.

Developing Internal Capabilities

Companies need to have an in-depth understanding of the financial risks they are underwriting. They also need to be familiar with the cost benefit of different strategies that can be deployed to manage the risks.

Companies that do not proactively manage their risks or outsource a significant portion of the risk management decisions may be unpleasantly surprised as experience unfolds. These companies are not likely to be seen as market leaders and may be negatively perceived in the marketplace. In turn, this may hurt top line growth, decrease share price and increase funding costs.

Companies that are serious about offering complex guarantees need to be able to demonstrate to the regulators, rating agencies, shareholders and ultimately to the policyholders, that they have the expertise and the tools to make sound risk management decisions.

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