Best ESG software: Milliman CHESS
Economic scenario generators (ESGs) are integral to risk and capital management processes, with insurers hungry for greater calibration capabilities and internal model-friendly solutions.
Milliman's CHESS simulates future economic conditions like interest rates, stock values, inflation, real estate indexes and credit spreads in risk-neutral and real-world universes.
This solution helps insurers compute regulatory calculations, like Solvency II economic balance sheets and solvency capital requirement assessments.
The software currently allows five drivers to be modelled: nominal rates, real rates, equity and real estate indices with a stochastic modelling of dividends and rental rates, as well as credit spreads.
CHESS is also available in the cloud, enabling users to instantly scale-up computing power for rapid results from intensive calibrations and simulations.
The judging panel commended the traceability and auditability of calculations in CHESS.
In 2019, Milliman CHESS will integrate a multi-currency framework with dedicated models. It is also planned to improve the advanced user experience by embedding a wider range of modelling parameters.