03 August 2009
Published in: Software
SolveXia tries different approach on Solvency II software
A different approach to the Solvency II requirements of insurance companies is being developed by software company SolveXia. It offers a "software as a service" web-based system that allows users to automate the "end-to-end" processing of their risk analytics.
Instead of providing its own proprietary analytics, SolveXia can host and run existing actuarial systems and other analytics such as replicated portfolios and risk aggregation. The platform allows users to choose the tools they want from different providers without locking them in to any one vendor. The package is delivered via a browser with no client or user installation and there are no up-front software licensing and hardware purchase costs.
SolveXia at present provides capacity on demand through GoGrid, the cloud-hosting division of ServePath, which manages thousands of servers from its base in San Francisco. This, according to SolveXia, provides access to virtually unlimited computing power in secure data centres and therefore the industrial strength needed to run enterprise risk management systems efficiently. As demand grows, says Martin Sher, the company's managing director, SolveXia intends to source additional capacity from other cloud providers to offer clients regional choice, alternative hardware options and on-going "best price" options.
Sher considers that most actuarial software vendors are concentrating on the pillar I analytic requirements of Solvency II. "We're focusing on providing the enterprise technology and infrastructure to support pillars II and III and we're neutral on what the pillar I analytic engine is," he says.
The platform provides full audit and control capability, coupled with the flexibility and scalability offered by cloud computing resources. Continues Sher: "We offer an end-to-end process from data extract and conversion, Excel data and table's maintenance, actuarial projection execution and Excel based-reporting, including for example the automatic production of PDF reports and even power point presentations, as well as full enterprise-risk dashboard capabilities."
Not only is the business model different to others, he observes --"We're a bit like a portal" -- the pricing basis is different. "You pay for what you use," he explains. "Based on new technologies, our whole development and delivery system is highly cost-effective because we're not encumbered with maintaining the legacy systems and cost structures of a large organization."
Sher, who was formerly chief operating officer and director of Classic Solutions, the firm that developed the MoSes financial modeling system (now owned by Towers Perrin), agrees that being analytic-system neutral means that SolveXia cannot provide the full depth of system-specific functionality of, for example, MoSes or SunGard's Prophet, whose enterprise offerings are restricted to running only their own proprietary analytics. "Rather we provide a generic interface and framework that works across all engines," he says.
Being web-based, SolveXia is also reliant on browser speed, though this is being boosted by new technology such as Microsoft's Silverlight and the industrial -strength cloud providers used. Inevitably with a cloud-based offering, there are also concerns about security of client data and potential bandwidth constraints but SolveXia is confident that its platform addresses these. Further SolveXia lacks its own analytics but Sher says the firm "is seeking to partner with others on this and allow clients to run the widest range of analytics of their choice."
SolveXia is going to be tested by clients in the third quarter of this year and the first production release is due early in the fourth quarter.
For full details of this software, see the listing for SolveXia in Software, 12 May, "Financial and risk modelling software moves into "qualitative" areas."