Welcome to our second Newsletter. We are delighted to share the news that version 1.2 of our end-to-end business management system, ClariNet™, has now been released into production. Version 1.2 includes some significant additions to the existing functionality, described in more detail below. We’ve also spent a good deal of time working with our partners on the development of a Common Case Standard – read on for more information.
Version 1.2 of ClariNet incorporates many significant enhancements, designed to assist managers of portfolios of policies in valuing their portfolios and conducting risk analysis:
- Portfolio Management: All of the portfolio management tools are now accessed from a single page. Portfolios can be copied and edited, allowing you to simulate changes in portfolio composition and conduct pricing and risk analysis before making acquisition decisions.
- Portfolio Valuation: ClariNet’s policy pricing model can be deployed across all policies in a portfolio with a single click. You have the option to value all policies using the same base valuation assumptions or to use customized IRR and life expectancy information for each policy in the portfolio. Customized settings can be uploaded through ClariNet’s data upload wizard.
- Portfolio Risk Analysis: Portfolios of policies can be valued using user-defined Risk Scenarios, to simulate the effect on portfolio valuation of stresses to discount rates and life expectancies, either separately or together. Up to five different Risk Scenarios can be defined and run simultaneously, with the results displayed on-screen alongside a base valuation for the portfolio. The aggregate cashflows and mortality curves generated in each Risk Scenario are made available for export as CSV files.
- Monte-Carlo Modelling: ClariNet’s integrated Monte Carlo engine allows you to generate up to 1,000 independent simulations of the mortality performance in your portfolio, producing aggregate cashflows for each scenario (separated into net death benefit, premium and fee streams) for export as CSV files. The resulting CSV files can be used to drive your own asset/liability and securitization modelling.
- Pricing Model Enhancements: ClariNet’s policy pricing model now offers independent, user-defined discounting rates for premiums, fees and net death benefit cashflows. The integrated Scratch Pad allows you to solve for any one of the component IRR values or a target price. Multiple life expectancy reports can be blended according to user specified weightings. ClariNet’s policy pricing model now displays historical premium payment assumptions as part of its pricing results, allowing you to incorporate this information as part of your bid.
- Enhanced Pricing Templates: Parameters in the Valuation Template now include an override for smoking status (to address situations where underwriters differ in their determination of the insured’s smoking status). Each Valuation Template integrates a Fees Template, which allows you to specify acquisition fees and ongoing servicing/trustee fees and to incorporate those into a projected valuation for a policy and/or portfolio.
- Data Import and Export: Import cases and entire portfolios (in XML format). ClariNet’s data import wizard automatically checks the XML file for errors and for duplicate insured and policy information (based on the cases in your account within ClariNet).
In conjunction with Q Capital Strategies and Berkshire Settlements, ClearLife has developed a new standard for case information exchange, called the Common Case Standard or “CCS”. The CCS is intended to provide a uniform representation of insured, policy and illustration information within a case. It establishes a standard XML schema which describes the contents of a typical case file; XML files generated using this schema can be sent by whatever means the user prefers to other market participants.
Document identifiers can be included within the XML file, allowing secure downloads of these documents by the recipient. The XML schema also includes MD5 hashing, allowing recipients of cases to verify the integrity of the XML file upon receipt. The CCS can be implemented in several different ways, at the discretion of the user, to allow for varying levels of security and privacy protection, both within the data structure and the linked documents.
Please contact us for a copy of the Common Case Standard.
Version 1.2 builds on the solid infrastructure designed into ClariNet from its first release at the end of June 2009. Releases being rolled out during the next few months will include:
- Pre-contract information collection;
- Automated contract package assembly;
- Customized contract package verification;
- Closing process tracking;
- An enhanced bid management interface; and
- Acquisition process event tracking.
Please don’t hesitate to contact us to discuss how we can help you integrate ClariNet into your life settlements business.