Solvency II product of the year – Moody’s Analytics

Risk Markets Technology Awards 2019

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Colin Holmes, Moody’s Analytics
Colin Holmes, Moody’s Analytics

Moody’s Analytics’ RiskIntegrity Suite offers an end-to-end solution for Solvency II that delivers out-of-the-box capabilities for standard formula and internal model compliance, including solvency and minimum capital requirement calculations. The solution has comprehensive risk module coverage for standard formula and offers flexibility for Monte Carlo aggregation to support internal model calculations. This is combined with robust data management and integrated reporting, including Solvency II quantitative reporting templates.

The suite’s Proxy Generator module calibrates proxy functions to model metrics such as asset and liability values, reducing insurers’ reliance on full asset-liability management cashflow models for a range of applications, including interim valuation, capital calculations and hedge effectiveness. A datamart specifically designed for insurers consolidates risk and finance data from various source systems.

The company also offers a number of scenario-generation solutions, with packages of software, models and content to meet the business challenges of Solvency II preparation and compliance. 

In April 2018, Moody’s Analytics launched RiskIntegrity Insight, the result of more than three years’ engagement with the market around business projections, business planning, own risk and solvency assessment, and stress‑testing issues. This strategic tool allows insurers to project financial and risk metrics under alternative forward-looking economic and insurance scenarios. It provides a configurable modelling and analytics platform that helps management visualise the impact of scenarios on key metrics and provides insight into the dynamics of the business.

RiskIntegrity Insight can project multiple financial statements in combination with a flexible dashboard that enables management to perform drill-down and comparison analyses across different business forecasts. The module leverages output from Moody’s Analytics’existing modelling infrastructure, such as the AXIS actuarial system and economic scenario generator.

 

Judges said:

“Moody’s Analytics offers clarity of purpose and breadth and depth of coverage, as well as impressive innovation and road map.”

“A comprehensive suite of components leading to an overall reporting framework.”

“Moody’s Analytics sets a high bar for Solvency II support, with an impressive client list and testimonials.”

“Compelling user references for the company’s Solvency II solutions, such as its economic scenario generator for investment modelling, stress and
scenario testing.”

 

Colin Holmes, managing director of insurance solutions at Moody’s Analytics, says:

“The compliance element of Solvency II is largely in place; insurers have the process and tools to complete their regulatory submissions. What is also clear is that Solvency II, and similar regimes, have added complexity to managing the balance sheet. The ability to assess the impact of management actions and external factors on a range of financial metrics is key to insurers’ ability to make decisions that create value for their organisation. For example, we recently completed work with a large European life insurer to model the impact of strategic-asset allocation on their Solvency II balance sheet, helping them to assess investment decisions.”

 

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