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STOCHAc is the world’s fastest multiple stochastic simulation generator

STOCHAc is the world’s fastest multiple stochastic simulation platform for:

  Life insurance companies marketing and/or servicing variable life and variable annuity products with guarantees

  Property casualty companies performing extensive simulations of covered risk events

  Asset Liability Management and Pricing Fixed Income Assets, Industry Neutral

STOCHAc was specifically built to radically increase the processing speed of companies who depend on multiple stochastic simulations for pricing, valuing, and risk-managing their derivative products or services.

For the vast majority of companies, these simulations take days if not weeks to complete with 70% to 90% accuracy, despite using optimized computer hardware and grid systems.

In contrast, The STOCHAc Platform accelerates the stochastic processing speed by a factor of 300 or more, all with a degree of accuracy above 99%, far more precise than any solution currently available.

This is possible, due to the fruit of years of extensive research, by Mr. Lloyd Foster FSA a Fellow of the Society of Actuary and a Computer Science Graduate from Carnegie Mellon University; which led to the discovery and development of a highly complex and optimized formula.

The STOCHAc platform has been thoroughly tested, and used flawlessly in numerous consulting assignments at some of the largest insurance and reinsurance companies, over the past 7 years.

The power of STOCHAc is that it applies to both Point-in-Time and (especially) Nested Stochastic simulations. In the case of nested stochastic processing, it allows for variation at each point, of the relevant parameters such as:

  •   The Interest Rate Curve
  •   Volatility Evolution
  •   Mortality and Other Decrements
  •   Equity Evolution
  •   Correlation

Case in point, current stochastic modeling capability are lacking the processing speed that is required to handle the following requirements:

  Hedge programs for derivatives need up-to-date information to dynamically adjust positions taken in the market

  Senior management teams require answers to many "what if" and stress-testing re-runs to effectively manage the company

With STOCHAc, companies will be able to achieve these demanding requirements in a matter of minutes with a degree of precision never reached before, giving them an unparalleled advantage over the competition, who still relies on slow and outdated computational systems.

Download the STOCHAc PDF