Enterprise Risk Management Technology Guide 2023

RNA Analytics: Helping insurers embrace change

Matthieu Soulas, principal actuarial consultant at RNA Analytics, assesses the major regulatory issues facing insurers. In particular, he explains how the provider can help insurers deal with IFRS 17

Matthieu SoulasWhat are the main technology trends shaping the insurance sector?

The insurance world has already been moving towards digitalisation and virtual systems and insurtechs have experienced a lot of growth.

Big data, machine learning and artificial intelligence has already started to be used by the insurance market, and particularly in healthcare and motor lines. By using these technologies, insurers can obtain greater value and make good use of the explosion of digital information to make tailored products for their clients and remain competitive.

How do you expect technology to change insurance actuarial modelling?

I think insurers will have to consider pandemics becoming a more probable risk in the future and I think predictive models will start to be used because of the lack of data. We cannot just run scenarios replicating past financial crises. There will need to be more use of machine learning and predictive models to try and assess the impact if another pandemic happens in the next decade.

What are the major regulatory issues facing insurers?

So far, what I have seen in Europe is mainly a focus on Solvency II and IFRS 17. The market has been heavily focused on IFRS 17 for the past couple of years as insurers need to interpret the principles in the accounting standard. The main challenges from the regulation involve data and speed, and the tools available to insurers did not meet that need.

Insurers have wanted to re-use the investment they made for Solvency II in IFRS 17. I would say the market almost forgot about Solvency II for a year. But with the delay to IFRS 17, insurers are back on track.

Do you welcome the one-year delay to IFRS 17?

Yes and no. It depends on the mentality of the company. Yes, it will give insurers more time to prepare for the regulation and plan accordingly. But I do see some companies putting the project on hold and this is not a good approach.

There are also some companies considering IFRS 17 and Solvency II separately. At some point, they will realise there needs to be a convergence between IFRS 17 and Solvency II.

What enhancements has RNA Analytics made to its software over the past year?

We just released an updated version of our R³S financial and risk modelling software. This was mainly focused on improving performance of the software suite, but also including new functionalities to support the new non-life library, which will be available in the coming months. All our updates are based on client input and we always improve our tool based on what the market requires.

One of the larger enhancements is the new record-level output. This allows users to output projected values at a record level, which is something our client needed for IFRS 17 reporting. This new output is much more efficient as it reduces the memory required by models and improves performance.

How can RNA Analytics help insurers deal with IFRS 17?

R³S software suite is designed to help companies meet their need for more realistic and granular modelling in financial analysis and regulatory compliance. With a single software suite, users can benefit from a consistent set of calculations, approaches and skills to improve on the granularity, accuracy and speed with which they can produce information and metrics.

The flexibility with which the suite can handle calculations, data and processes enables a business to implement the approach where it can realise the most value. For today's life and non-life insurers, RNA Analytics has the consultancy expertise, the global reach and the ability to deliver bespoke and scalable software solutions that help organisations overcome the challenges of IFRS 17.

Matthieu Soulas
E: [email protected]

Guide entries by RNA Analytics

FactSet Data & Analytics Solutions

Touchstone

Pricing - Tyche Pricing System & Aon Pricing Platform

Reserving - Tyche Reserving System

Aptitude IFRS 17 Solution

Aquantec Ocean

Atidot AI & Analytics Platform - Atidot OPTIMAL

ANNalytica

BW KIDS 4 PRIIPS Tool

SIImplify

With Profits Payout Monitoring Dashboard

Demographic Experience Monitoring Tool

ATOME: Particles

ATOME: Matter

ADVISE® Enterprise Risk Modeler

Conning Allocation Optimizer™

Conning Climate Risk Analyzer™

FIRM® Portfolio Analyzer

GEMS® Economic Scenario Generator

XSG

Detech Optimizer

DEvent

Dynamo Analytics - Psicle

Incisive Essentials - Xcellerator

Integrate

Milliman Mind

ModelSign

Solvency II Compliance Assessment Tool

STAR Solutions NAVI

STAR Solutions VEGA

Milliman Mind–IFRS 17

Arius

Datalytics-Defense

Nodal Claims Triage

Milliman Economic Scenario Generator

Milliman AccuRate Fleet

Milliman Bungalow

Milliman PinPoint

Curv

Milliman Long–term care Advanced Risk Analytics™ (Milliman LARA™)

Milliman M-PIRe Valuation & Securitization Software

AXIS™ Actuarial System

Scenario Generation Solutions

Climate Pathways

RiskIntegrity™ Suite

Oasis Loss Modelling Framework

GLASS

Economic Scenario Generator

Phinsys Insurance Suite

CoMeta

ChemMeta

Matching Adjustment Analytics Tool

R³S Software Suite

Mo.net Model Development Studio

Mo.net Operational Modelling Centre

Mo.net Quotations Service

Mo.net Cloud Modelling Service

Mo.net Mobile Modeller

IFRS Assess Enterprise

SolvencyTool

SolveXia

Governance, Risk & Compliance System

DataValidator

ResQ Financial Reporter

Unify

Igloo

Radar

ResQ

zeb.control

evo-insight - New Actuarial Modelling and Analytical Platform from Zenith

Asseco IFRS 17 Engine

Actuo SII Engine

IFRS17 Solution

Reserving solution

Solvency II solution

Pricing solution

CLARA Casualty Claim Platform (CLARA Triage, CLARA Treatment, CLARA Litigation, CLARA MSP Compliance, CLARA Optics)

Portfolio Manager

JBA Flood Modelling Technology

IFRS Assess and Risk Analyser

Numerix Insurance Suite

PATOne EDM

Quantee Platform

On-Demand CAT Modelling Services on the Oasis Platform

Graci

Riskonnect

FE Solvency II

Grace Connect GRC Suite

Monitaur

DeepCyc

ForeCyc

Metryc

Escali Financials and Escali Supervision

CALFITEC

Quotech Underwriters Workbench

FIS Insurance Risk Suite (formerly known as Prophet)

LCP InsurSight

SS&C Algorithmics for Insurance

True North Data Platform

Balance Sheet Management (BSM)

Economic Scenario Generation (ESG)

MavenBlue Enterprise Pricing Management (EPM)

Optalitix Models and Optalitix Quote

Montoux Actuarial Automation Platform

Iris Actuarial Platform

CyberCube Analytics - Portfolio Manager

R³S Model Packages

R³S Modeler

R³S Process Manager

R³S Development Manager

Decision Focus

Fathom's Product Stack

Capital - Tyche Capital Model & ReMetrica

Incisive Essentials - Concourse

VIPR INTARGA

VIPR Insights - Data Analytics

Zupervise

Protecht ERM

Slope Software

Camms GRC Software

Quantee next-generation insurance pricing platform powered by AI

Oversight360, a Sicsic Solution

RISKflo

End User Computing (EUC) and Model Risk Management Software with Inventory, Discovery and Monitoring Modules

XLAudit Spreadsheet Error Analysis and Data Integrity Software

ClimateMAPS

Financial Results Analyzer

Systemorph IFRS 17 Solution

Systemorph Cloud

Risk Explorer™

RiskAgility FM IFRS 17 Calculation Engine

Predictable Dynamics

Res-Solver™

RiskAgility Financial Modeller