Solvency II solution of the year, Moody's Analytics
Solvency II came into life on 1 January 2016, bringing major changes to how insurers in the European Economic Area manage risk and capital, and how they report on their business.
But the insurance landscape has shifted over the last four years and Moody's Analytics wins the Solvency II solution of the year for its understanding of insurers' changing needs. The judging panel commended the solution as a comprehensive offering, which enables a strong end-to-end solvency management process.
Moody's Analytics says in the years since Solvency II was implemented, insurers' priorities have changed significantly.
"While we continue supporting our customers through regulatory change, for many of them, their attention is now more focused more on effective management under Solvency II.
"As an example, some of our customers need to analyse, efficiently, the impact of external factors and management decisions on Solvency II metrics – for example, when they're developing investment strategy."
Moody's Analytics "solid track record" of Solvency II expertise was recognised by the judges. This encompasses the RiskIntegrity Suite, which features standard formula and internal model capabilities, as well as regulatory reporting capabilities.
Moody's Analytics also offers scenario-generation solutions to meet challenges from Solvency II compliance.
Some of the areas where Moody's Analytics has developed its Solvency II solution include improved asset coverage for bond and FX options, and introducing the ability to price and stress bond options in line with the regulatory solvency calculation.
Among several achievements, the RiskIntegrity internal model software enables multiple real yield curves to be modelled simultaneously for a single economy.
The fact that Moody's Analytics continues to win new clients – as insurers add components to their internal model and assess the impact of economic conditions and different asset allocations on their capital position – underlines the strength of its Solvency II offering.