IRIS Insurance Game life

Simulation game

In cooperation with Lebensversicherung von 1871 a. G. (LV 1871) riva developed IRIS Insurance Game life, which has since established itself as the leading simulation game in the German life insurance industry. IRIS Insurance Game life is tailored to the particular needs of German and Austrian life insurance companies and received the InnoWard 2008 as an outstanding personnel development project of LV 1871.

Experience life insurance management “live”

Our simulation game software models a German insurance market with five life insurers. These five medium-sized companies sell several individual and group life insurance products through two distribution channels. The realistic model simulates the characteristics of the life insurance market as well as the particular features of life and annuity insurance products, and pure risk products. Customer groups and the economy (including capital, job and retail markets) in which the insurance model is embedded are also considered.

Acting as top executives, seminar participants manage their companies in a competitive market environment over several business periods. Participants make operative decisions in order to develop their companies within the market. If requested, these decisions can be strategically substantiated and extended to include a management perspective. The simulation software takes into account all pertinent functional areas of a life insurer, their interdependencies and implication on company results:

• Operations: Human resources and IT
• Marketing: Products, pricing, sales management and communication
• Risk management: Underwriting
• Investments: Asset liability management

Detailed reports and analyses model accounting and controlling functions. Using a complex investment model allows to explore the role of asset liability management. The integration of stochastic (factor based) risk models offers numerous opportunities and challenges around the topic of “risk”:

• Capital requirements according to Solvency I & II
• Ratings

The risk and performance rates from the internal risk models and the embedded value calculation allow the implementation of a risk and value based management.

Course of action

At the outset the participants receive annual reports of their respective companies together with market analyses. Based on this information the participants define the strategic direction for their company in the first round of the game and make operational decisions. Decision-making can be supported by notebooks/PCs but this is not mandatory. Following that, market developments are simulated and a new set of data is generated for the subsequent round of the game.

Facilitators – Assistants, coaches and consultants

Simulation game facilitators take on several roles:

Every simulation game is distinct because the initial situation is individually configured for the respective group of participants. During the game the facilitators act as “assistants” to the participants. With the help of the simulation software they process the decisions made by the participants in each round of the game, including implications on the insurance market. The software automatically generates annual reports and market analyses that can be supplemented by a wide variety of optional reports.

The facilitators coach participants during the group work, they analyse the results of each round of the game and moderate the discussions within the group.