Statistics

Stochastic simulation is an essential tool for many businesses to play out likely and unlikely scenarios. For example, in insurance it is used for capital modelling requirements. An EU directive stipulates that an insurer should hold enough capital to meet its obligations over a 12 month period at a 99.5% confidence level (often quoted as the chance of an insurer being ruined during the year should be no more than 1 in 200). [Read More]