Cloud, standard formula and GRC solutions gain traction

02 November 2012

Financial modelling software dominates the new ERM Technology Guide, as it did last year's, but there is more emphasis this year on enhanced computing performance, standard formula solutions and governance, risk and compliance

The ERM Technology Guide was compiled from information provided by 33 vendors in response to a detailed questionnaire sent out by InsuranceERM.

Their systems range from end-to-end risk and capital management solutions and economic capital aggregators to data management, economic scenario generators (ESGs), governance, risk and compliance (GRC) solutions and spreadsheet risk management tools.

The key changes detailed in this latest ERM Technology Guide include:

Towers Watson has launched standard formula applications for both Igloo (P&C) and RiskAgility. It's also introduced cloud facilities for MoSes and least-squares Monte Carlo functionality into RiskAgility EC.

Milliman has enhanced the cloud computing capabilities for MG-Alfa and has also introduced its Vega Solvency II solution that performs standard formula calculations.

SAS Risk Management for Insurance has had a standard formula capability based on the fifth quantitative impact study since last year and this year added the quantitative reporting templates for Solvency II.

SunGard has enhanced its Prophet Asset Liability Strategy solution and is planning a US own risk and solvency assessment (ORSA) feature for the fourth quarter of 2013.

Actuaris has implemented the reversible jump Markov chain Monte Carlo for best-estimate calculation in its reserving software, IBNRS.

Aon Benfield's ReMetrica version 6.0 is using a new technology called super components that massively simplifies models and reduces model size by up to 95%. The firm has also developed LifeMetrica which is being used for life reinsurance transactions.

Longevitas introduced significant enhancements to its two solutions as recently as 30 September, the main one being the addition to its Projections Toolkit of Value-at-Risk methodology for putting longevity trend risk into a one-year view.

Global Actuarial Services has launched an end-to-end asset look-through solution called TRANSKap which enables users to enhance the transparency of collective investments and deliver the solvency capital ratio (SCR) required for Solvency II reporting.

Conning is developing mechanisms to analyse liquidity stress, as well as model sovereign risk. It has also introduced its Investment Optimizer for strategic asset allocation.

URS claims growing interest in its Predictable Dynamics Global Economic Model which helps users to test strategic alternatives under many possible future economic scenarios and design risk mitigation and hedging strategies. URS licensed this to Spain's largest insurer, Mapfre, earlier this year.

Moody's Analytics officially released v1.2 of its RiskIntegrity solution for Solvency II, including a new user interface, implemented QRTs and integration of the ESG capabilities of Barrie & Hibbert, which it acquired in December 2011.

OAC Actuaries and Consultants launched Mo.Net 6 in August with a number of enhancements. One UK insurer has scrapped all its existing actuarial software to build a new system on the Mo.net platform.

Since last year's guide, QuIC Insurance Solution has morphed into Markit Analytics Insurance Solution, following the Toronto-based company's acquisition by Markit in January 2011.  

Another Toronto-based company, Algorithmics, which was bought by IBM later in 2011, has become part of IBM Risk Analytics, and the Economic Capital and Solvency II solution is now one of three separate but inter-related solutions within the IBM Enterprise Risk Management Framework.

Click here to go to the ERM Technology Guide