Scenario Selection Optimization

Purpose

Scenario Selection Optimization helps optimize which scenarios to include in stress testing by using clustering or optimization techniques to maximize coverage of the risk space.

Primary users

The primary user is not specified in the provided information.

Where it fits (process/stage/trigger)

This agent fits into the stress testing process when an insurance team needs to determine which scenarios should be included to improve coverage of the relevant risk space.

Key capabilities / workflow

The agent analyzes available stress testing context, uses clustering or optimization techniques on the provided datasets, checks whether risk-space coverage is sufficient, and iterates until an optimized scenario selection is produced.

Inputs

Typical inputs are not specified. The provided datasets are historical losses, exposure by LoB, catastrophe scenarios, and macro data.

Outputs / Deliverables

Typical outputs are not specified. Based on the provided use case, the deliverable is an optimized selection of scenarios to include in stress testing.

Value

The value of Scenario Selection Optimization is to support better stress-testing scenario selection by maximizing coverage of the risk space using structured analytical techniques.