A New Framework for Risk Assessment of Financial Products Powered by Incentive-Based Transparency
NEW YORK, March 27, 2012 – Marketcore (www.marketcore.com) has developed a new framework for risk assessment powered by financial and strategic incentives that actually induce usage by all market participants. The system harvests the data of insurance, loan, and derivative financial products, in combination with progressive pricing structures that reduce costs and risks for all participants. The Marketcore offering supports a broad range of applications across financial and insurance markets and products with full market reach across retail and secondary sectors.
The Marketcore data processing system is supported by a portfolio of issued patents covering in excess of 130 specific claims and is available for licensing by market participants across a multitude of financial markets and products.
The developers of the Marketcore products designed them to provide institutional investors with timely and complete information about market risks and activity and the ability to track risk elements of financial contracts in real-time and to view reliable valuation data comprehensively. Among other applications, the system supports the creation of new exchanges for insurance and financial products, risk differentiated financial products, targeted search functions, modern regulatory tools, and new alternatives to the traditional ratings agency structures.
“While Marketcore’s solution does not provide a ‘rating per se’, it will provide an unimagined level of transparency of the underlying value of any financial instrument and its subsequent performance, thereby allowing market participants to properly assess risk,” said Michael Erlanger, Managing Principal of Marketcore, Inc. “The solution directly links and advantages consumers, carriers and lenders, intermediaries, investors and regulators into a comprehensive, voluntary and collaborative community. It resolves the risk transfer and valuation issues by providing real time updates on risks by using financial and strategic incentives to improve operating efficiencies, generate incremental revenues and higher business volumes, create robust financial data, increase liquidity and transparency, and rebuild confidence in the marketplace. Using our system, everyone participates in the financial rewards that come from full disclosure.”
“There continues to be serious gaps in the knowledge that exists between the origination of a financial instrument and its subsequent placement. This has led to a serious ‘disconnect’ when it comes to the valuation and expected performance of particular financial contracts, particularly in asset-backed securities,” said Connie Erlanger, Managing Principal of Marketcore, Inc. “From the point of view of rating agencies and even insurance and banking regulators, these gaps are a critical problem when trying to determine accurate valuation of assets held by insurers and other financial institutions. Our system bridges the data base gaps by accumulating and tracking information from the initial loan request to a bundled security, all the way through to its final disposition.”
Since 2009, Marketcore has licensed a portion of its IP portfolio to the LexisNexis Insurance Exchange (LNIE). The LNIE facilitates the submission, rating and underwriting workflow between insurance brokers, agents, carriers and wholesalers while capturing relevant market analytics in the insurance origination market.
About Marketcore, Inc.
Marketcore, Inc. was founded in 2000 by Michael and Constance Erlanger and a consortium of individual investors with financial services and insurance industry expertise. To learn more, please visit http://www.marketcore.com/.