Moody's economic scenario generation (ESG) solutions have a long track record in addressing industry needs, and that's what makes Moody's the deserved winner of this category.
The judging panel was impressed that the tools support both new and existing customers in many areas, such as business insights and regulatory modelling; for example, on climate - asset and liability projections to facilitate customers' efforts to respond to Own Risk and Solvency Assessment and Task Force on Climate-related Financial Disclosures (TCFD) requirements.
Moody's says its customers are also applying and harnessing the power of the cloud to access high-performance computing that aligns with their peak-demand production requirements and their budgets.
The firm has developed its scenario generator solutions and services in several areas in the past year. For instance, it has extended its software to be compatible with a wide range of technology platforms. In particular, it has moved beyond a Windows-based operating system to additionally support deployment on Linux platforms for optimal performance and scalability in insurers' cloud-based environments.
The launch of a scenario generator climate pathways web-based application has also allowed Moody's insurance customers to experiment with different assumptions and scenarios to build robust recommendations and easily explain them to the board.
Commenting on what insurance clients need from ESG software these days, a Moody's spokesperson says the evolution of insurers' requirements, both from an internal and regulatory perspective, for climate risk scenarios continues to be a key theme.
"In addition, for advanced asset and liability management problems, we are seeing growing needs for integrated risk assessment methodologies. Bringing together our expertise in market risk, granular credit risk, climate risks and natural catastrophe risks offers insurers a deeper understanding and a more integrated approach to assess and manage these risks consistently across a range of business functions," says the spokesperson.
