Aon Benfield revolutionizes ReMetrica capital modeling tool for the proposed Solvency II regulations

Underwriting year reporting also enhanced for Lloyd’s market

LONDON - Aon Benfield, the world’s premier reinsurance intermediary and capital advisor, today launches its new Solvency II-focused version 5 of ReMetrica, its dynamic financial analysis tool for capital modeling. ReMetrica has evolved to help re/insurers meet the proposed regulatory requirements under Solvency II and to enable more effective year of account reporting for the Lloyd’s market.

The new Solvency II-focused components enable re/insurers to enhance their internal models and deliver accounting reports for regulators. They include:

* Fair Value Report: A financial reporting component tailored to ‘fair value accounting’, including fully discounted balance sheets, premium provisions and market value margins;
* Premium Provisions: Generates the additional reserve items relating to unearned business and non-incepted obligations which are required for fair value accounting;
* Reserving: An enhanced version of the reserving logic which uses a recognition pattern approach to allow balance-sheet to balance-sheet risk to be captured in a model calibrated on an ultimate-risk basis.

Aon Benfield worked with a group of insurers, predominantly from Lloyd’s, to shape enhanced functions for underwriting year reporting to meet the market’s requirements. This will allow users to simplify existing models without reducing accuracy. Enhancements allow smaller, more compact models to improve ease of use and deliver the following:

* Calculation of reserves by underwriting year;
* Allocation of reinsurance premiums and commissions by underwriting year;
* Underwriting year reporting components.

In addition, a new reporting component for capturing counterparty-level reinsurance default risk has been developed, as well as improved tools and interfaces including Wizard-style reporting.

Paul Maitland, head of ReMetrica at Aon Benfield Analytics, said: “Solvency II has been a key trigger in the next step of ReMetrica’s evolution. We’ve listened to and worked with both our clients and the regulators to adapt and enhance the software. It helps re/insurers to meet the proposed regulatory requirements while continuing to test different strategies and make informed business decisions.”

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About Aon Benfield
As the industry leader in treaty, facultative and capital markets, Aon Benfield is redefining the role of the reinsurance intermediary and capital advisor. Through our unmatched talent and industry-leading proprietary tools and products, we help our clients to redefine success. Aon Benfield offers unbiased capital advice and customized access to more reinsurance and capital markets than anyone else. As a trusted advocate, we provide local reach to the world’s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial, and rating agency advisory, and the right professionals to advise clients in making the optimal capital choice for their business. With an international network of more than 80 offices in 50 countries, our worldwide client base is able to access the broadest portfolio of integrated capital solutions and services. Learn more at aonbenfield.com.