Conning - GEMS® Economic Scenario Generator
Type of System
- Economic / risk scenario generator
- Risk management
Type of platform
Other features - the offering facilitates:
- Least-squares Monte Carlo
- Replicating portfolios
- NAIC RMORSA
- NAIC Principle-based reserving
- Solvency II standard formula
- Solvency II internal model
- IFRS 17
What are the typical implementation costs?
The annual subscription fee depends upon the required software features and the range of economies to be modelled.
How long does your software take to implement on site?
The software can be downloaded, installed, and licensed in less than an hour. Built-in standard templates allow for comprehensive single-/multiple-economy scenarios to be generated immediately.
Most recent significant update:
Release 7.2 of GEMS® Economic Scenario Generator features an improved user interface with streamlined asset modelling, as well as enhancements to the cloud architecture which allow large simulations to be run at a speed that would be difficult to achieve with the typical dedicated in-house system.
Planned future enhancements:
An agile approach provides regular releases of new features. The GEMS® recalibration tool continues to be a development focus, allowing the end-user to calibrate the tail distributions and correlations. In parallel, Conning is developing a SaaS version of GEMS® with a browser-based interface.
How does your solution integrate with third-party systems or in-house systems?
GEMS® is the cornerstone of full stochastic asset-liability modelling using FIRM® and strategic asset allocation using the Investment Optimizer tool. These tools are all built in the same code base and provide a seamless experience with the ability for user to switch on the functionality they require instead of having to migrate their models to a different system.
GEMS® Economic Scenario Generator integrates with third-party modelling tools via command line interface, API, or via automated import/export of scenario text files in the required format. Additionally, GEMS® Economic Scenario Generator can be fully integrated with the Prophet actuarial software solution. This new integration layer allows Prophet users to seamlessly generate GEMS® economic scenario data from within Prophet, without cumbersome and inefficient intermediate files, for both point-in-time projections and forecasted on-the-fly simulations.
What is the key attribute of your product(s) that differentiates it from your competitors?
GEMS® Economic Scenario Generator can natively model an insurance company’s balance sheet, incorporating management actions, dynamically rebalancing between assets, constructing hedging strategies, and projecting cash flows of thousands of individual securities. The power of our asset models stands us apart from our competitors and provides companies with a unique insight into the distribution of their risks.
What trends are you seeing in terms of customer demand?
Cloud software is becoming more and more important as companies look for cost savings when they need to refresh or upgrade existing IT infrastructure. From a use case perspective, increasingly clients are looking for an Economic Scenario Generator which supports multiple areas of their business, such as asset-liability management and strategic asset allocation.
Conning’s GEMS® ESG simulates future states of the global economy with real-world and risk-neutral scenarios.