ClariNet LS combines all of the tools necessary to run a successful business in life settlements. Its modules run the gamut from data and document storage, through transaction management, pricing and risk analysis, to portfolio valuation, servicing and securitization. You can import and export data easily using a variety of different templates and drive reporting to investors and senior management from its dashboards. It is a complete, integrated solution for all market participants, delivered through your web browser.

Workflow Your Way

ClariNet LS allows you to accommodate changes in your workflow and trade processing easily. In ClariNet LS, a Case is a collection of data describing the key components of a life insurance policy – the policy itself, the underlying insured lives, policy illustrations, life expectancy reports and premium information. Case States help you track the lifecycle of the policy from active through to matured. Changes in the ownership of a Case are recorded through a series of Transactions.

ClariNet LS’s comprehensive functionality is delivered through several different modules:

Essentials

Essentials is the core module for ClariNet LS. It handles all steps from Case setup to an accepted bid seamlessly. It is designed to meet the needs of agents and brokers for secure information storage and transmission. Its key features include:

  • An intuitive Case setup process, using either a wizard or a form;
  • Captures all of the data required to submit a Case securely to a prospective buyer for consideration, directly through ClariNet LS or via a secure web portal;
  • Handles multiple instances of illustrations, life expectancy reports, premium schedules and other data objects;
  • Upload and storage of documents and audio files
  • Integrated document redaction tool;
  • A Case Summary page, showing all Case data on a single tabbed web page, with critical pages editable inline;
  • Manage bidding with several different counterparties simultaneously;
  • Audit log tracks all changes in Case data;
  • Advanced Search and reporting tools, including ability to save user-defined searches;
  • Rating history supplied by AMBest for over 3,500 life insurance carriers;
  • Full CRM database covering counterparties and customers.

Single Policy Pricing

Understanding the value you create for your clients is key – so the first extension to Essentials is our single policy pricing model. Ours is the only pricing model in the life settlements industry which has been independently validated by a “big 4” accounting firm. It includes:

  • Probabilistic and deterministic pricing;
  • Survival curves built from mean/median LE50, mortality factors and full underwriter mqx curves;
  • Combined ageing and independent ageing of life expectancies;
  • Premium optimization for traditional universal life and whole life policies (participating and non-participating);
  • User-defined life expectancies;
  • 2001, 2008 and 2015 VBT mortality tables as standard;
  • User-defined mortality tables;
  • Access to Fasano Associates’ mortality tables (at additional cost);
  • Calculates NPV and IRR;
  • Calculates and displays key risk metrics;
  • Results exported as CSV or PDF.

Closing

The Closing module is designed for life settlement providers. It adds the ability to create Closing Transactions, to move the Case from an agreed price through to completion of the acquisition while managing the process of generating and compiling the extensive list of documents required for a life settlement transaction. This module includes:

  • Division of total bid into component parts (seller compensation, broker compensation, premium reimbursement, etc.);
  • Case Participants list (seller, seller spouse, beneficiary, escrow agent, etc.);
  • Document library, arranged by state and by investor (to allow for different contract package contents);
  • Automatic population of Microsoft Word templates from data stored in your ClariNet LS subscriber account;
  • Tracking receipt of contract documents as they are received;
  • Document Verification: up to two closing analysts and a supervisor can audit user-defined control points on documents contained within the Case; and
  • Closing Checklist: A user-defined workflow tracking the progress of the Case through post-contractual checks, in preparation for final completion of the acquisition.

Portfolio Management

Portfolio Management extends the pricing and risk options from the Single Policy Pricing module into Portfolios of Cases and adds simulation analysis using ClariNet’s proprietary Monte Carlo engine. Key features of this module include:

  • Unlimited Portfolios;
  • Up to 1,000 Cases in each Portfolio;
  • Cases can be held across multiple Portfolios simultaneously;
  • Excel Portfolio Uploader included for importing new Cases (including CRM data and Servicing information) and updating information for existing Cases;
  • Wizard runs “pre-flight checks” on Portfolio Uploader before import is completed
  • Portfolio View dashboard provides graphical summary of key metrics (AMBest ratings, Carriers, Face Amount, etc.);
  • Accommodates stresses to Premium Schedules, such as crediting rate changes and COI increases;
  • Uses LE blends and Premium Schedule selections from individual Cases, which can be overridden for specific valuations;
  • Exports survival curves, individual and aggregate cashflows;
  • Matrix valuation outputs net present value of each Case in the Portfolio across multiple user-defined discount rates;
  • Cashflows are bucketed monthly for ease of analysis;
  • Risk Scenarios allow for valuation in stressed situations, e.g., LE extension, discount rate changes, qx flattening;
  • Monte Carlo engine generates up to 100,000 simulations for all Cases in the Portfolio;
  • Includes intermediate results for cashflow/waterfall models (including ClariNet LS’s Liability Management module);
  • Intermediate and final results published as CSV files for ease of export to other models;
  • Actual to Expected (A2E) analysis compares realized Policy maturities and insured mortalities to expected performance;
  • Displays standard deviation either side of the mean expected NDB cashflows to assess confidence in performance; and
  • Accommodates reporting across Portfolios, with results available as PDF and/or CSV.

Servicing

ClariNet LS’s Servicing module allows you to monitor and perform tasks critical to the maintenance of your Portfolio of life insurance policies. Its features include:

  • Premium History: track past premium payments (e.g., for no-lapse guarantee premium optimization);
  • Premium payment import/export for all Cases in a Portfolio, allowing for bulk upload of premium payments from your paying agent;
  • Order Tracking: Illustration, annual report, verification of coverage, medical records, LE reports, HIPAA release;
  • Health Status Tracking: Record communications with insureds and health status contacts in a journal and add follow-up reminders;
  • Attach MP3/WAV recordings of calls with Carriers to a VOC data set;
  • Task Cycles: Accommodates different task frequencies for different Portfolios;
  • Allows for tracking frequency to increase for specific insureds;
  • Follow-up flags can be set for individual orders/tasks;
  • To-Do list published for each Portfolio, based on Servicing Tasks for Cases in that Portfolio; and
  • Automated Document Upload polls a designated FTP server once a day to identify new files on that server and upload them automatically in the relevant Case files in ClariNet LS.

Liability Management

An extension of ClariNet LS’s Portfolio Management module, Liability Management adds the ability to structure securitization/financing deals around a given Portfolio and then monitor performance after execution:

  • Builds a set of simulations using ClariNet LS’s Monte Carlo engine;
  • Runs each simulation through a user-defined cashflow waterfall;
  • Accommodates cash accounts and stop-loss insurance;
  • Liabilities table handles term debt and liquidity facilities;
  • Debt structures can be bullet or amortising;
  • Interest can be fixed, floating or none;
  • Net Death Benefit payments can be split across multiple debt instruments;
  • Separate priority settings for interest, principal and liquidity facility repayments;
  • Model reports number of simulations in which each liability fails to repay (i.e., probability of default);
  • Allows for deal structures to be saved as XML for future use;
  • Calculates forward price for all Cases in the Portfolio in order to model management fees indexed to NPV;
  • Includes a US Dollar swap curve builder using money-market/depo rates, swap rates, US Treasuries; and
  • Full results and per liability results exported as CSV.

Security and Disaster Recovery

ClariNet LS is hosted in data centres operated by Amazon Web Services. Production servers and backups are hosted in different regions, to minimize the risk of catastrophic data loss. All communications between the user and ClariNet LS’s servers are encrypted and ClearLife maintains Extended Validation SSL certificates to ensure the security of your data. Both production and backup sites are monitored continuously and a sustained failure notification at the production site triggers a failover process to the backup site. Incremental database backups are taken regularly and copied to the backup site.

Community Led Development

ClariNet LS is under continuous development. All subscribers benefit from new features and improvements to their modules as they are released and ClearLife works directly with all of its customers to solicit ideas for inclusion in a future release. Releases occur every two to three weeks and combine new functionality and improvements to existing functionality with bug fixes to improve usability and stability.