Korra, a software-as-a-service (SaaS) provider supporting property and casualty (P&C) reinsurance and insurance-linked securities (ILS) transactions and a wholly owned subsidiary of Ledger Investing, Inc., has launched a new application to help insurers, brokers and investors assess risks, calculate prices and evaluate the financial implications of reinsurance agreements.
The application, Korra Deal Analysis, combines loss forecasting, transaction modelling and investor reporting in a single workflow, supporting the evaluation of casualty, non-catastrophe property and specialty reinsurance and ILS opportunities.
Korra said the platform is designed for cedents, managing general agents (MGAs), fronting carriers and reinsurance brokers involved in structuring and marketing transactions. Users can develop pricing models, assess exposures and prepare reports for prospective investors.
ILS investors and collateralised reinsurers can also use the application to evaluate proposed transactions based on financial indicators, including internal rate of return (IRR) and multiple on invested capital (MOIC).
According to Korra, this approach allows investors to assess transaction economics using investment-focused measures rather than relying primarily on accounting metrics such as the combined ratio. The application also incorporates stochastic modelling to help users evaluate potential losses and the likelihood of adverse outcomes using models tested against historical data.
“Structuring and evaluating an ILS transaction requires understanding not only what losses may look like, but how they develop over time, flow through the deal structure, and affect each party’s economics,” commented Kyle Safran, Head of Data Science at Korra.
“Deal Analysis brings those pieces together — loss modelling, reinsurance structure, collateral requirements, capital structure, and investor returns — in a transparent modelling environment where reinsurance brokers and capital providers can test assumptions, compare alternative structures, and understand the distribution of potential outcomes. This gives teams an iterative and explainable way to price risk, structure transactions, and assess deal viability.”
Korra Deal Analysis uses artificial intelligence (AI) to extract relevant information and historical loss triangle data from reinsurance submissions. The company said this functionality is intended to simplify the review of past claims experience and help users prepare the data required for analysis.
Historical performance can be examined through Korra’s graphics library, while its industry performance database allows users to compare results against broader market data and combine information from different sources.
For forward-looking assessments, the application supports a range of loss modelling methods, from conventional actuarial techniques to Korra’s hierarchical Bayesian models. These generate probability distributions for future loss ratios, enabling users to examine a range of possible outcomes rather than relying on a single forecast.
According to Korra, its Bayesian models are based on published, peer-reviewed methodologies and are designed to address the limited historical data that may be available from MGAs. The models incorporate prior assumptions informed by industry data to support assessments where an organisation’s own claims history provides limited evidence.
Once loss projections have been developed, users can model alternative transaction structures and assess their effect on investor returns, including MOIC and IRR. Korra said the resulting analysis and forecasts can be compiled into reports for investors, providing a consistent overview of a transaction’s assumptions, financial characteristics and potential outcomes.
“As alternative capital takes a larger share of reinsurance, brokers and investors need better tools to evaluate risk and transaction economics,” added Meredith Barnes-Cook, Senior Principal at Datos Insights. “Platforms that bring actuarial modelling, deal structuring, and investor reporting into one environment make these transactions easier to assess, compare, and explain.”
The application is also intended to support monitoring after a transaction becomes active. Information and analysis produced during the initial assessment remain available through the platform as claims develop, allowing users to track transaction and portfolio performance over time.
The company added that this ongoing access to data can support the reassessment of transaction valuations and help inform decisions when agreements come up for renewal.
“Risk originators and capital providers are ultimately looking at the same underlying risk from different perspectives, yet much of the analysis still happens through disconnected spreadsheets, static reports and manual workflows,” said Umair Rasool, General Manager of Korra.
“Deal Analysis gives both sides a more transparent and repeatable way to model risk, evaluate transaction economics and align on deal terms. By bringing those workflows together on the Korra platform, we’re creating a stronger analytical foundation for connecting risk with capital.”
