Best Solvency II solution: Moody's Analytics, RiskIntegrity
Solvency II has led to increased activity in the enterprise risk management (ERM) software space, as insurers look to optimise their approach to regulatory and internal management requirements.
Moody's Analytics has been working to improve its suite of RiskIntegrity modelling software over the past year. The eight components – comprising solutions for reporting, standard formula, internal models, economic and risk scenario generators, and data management – designed to address the risk and solvency ERM needs of all insurance companies
For its standard formula and regulatory reporting software, Moody's added further national-specific templates to smooth the process for clients in their 2017 regulatory submission commitments; added functions, including the calculation of ratios and ranking that enable some reports to identify which data are material or not (e.g. material currencies), and the calculation of the shift for transitional measures.
It also improved the software's asset coverage, to price and stress a broader range of asset types in line with the regulatory solvency calculation, and provided a new calculation architecture that allows assets to be processed in parallel.
Firms using Moody's internal model software were able to configure system inputs in CSV files, export charts and underlying data more easily, upload large scenario files and enjoy improved performance when running the software on machines with several cores.
The firms continued to expand the diverse range of clients using its systems. During 2017, UK motor and home insurer Admiral Group selected Moody's Analytics Economic Scenario Generator (ESG) for market risk calculation as part of its Solvency II internal model, and will also use the ESG for investment modelling and stress and scenario testing.
Austria's Uniqa also selected a number of Moody's Analytics solutions for their valuation, components of their internal model, strategic asset allocation, and portfolio optimisation.