RNA Analytics - R³S Software Suite
Type of System
- Capital modelling
- Economic capital aggregation
- Asset/liability management
- End-to-end ERM
- Solvency II solution
- Risk management
- Stress testing
- Portfolio analysis/hedging
- Reserving solution
Type of platform
Other features - the offering facilitates:
- Least-squares Monte Carlo
- Solvency II standard formula
- Solvency II internal model
- IFRS 17
What are the typical implementation costs?
The size of the investment depends on the size of the product portfolio, the complexity of the company structure and the type of models to be reproduced in the new tool, but also on the overall company infrastructure upon implementation.
The key element is to plan adequately the project considering external impacts to ensure the different milestones are delivered under agreed timeframe and budget answering the company’s business case.
Depending on the type of project, returns and cost saving would be measured based on different dimensions like time, flexibility, and robustness. Flexibility and transparency of the tool allow the end user to learn and work faster resulting in cost savings. A robust end-to-end process will allow future projects to be implemented more rapidly using the same IT infrastructure thus saving costs in the future.
How long does your software take to implement on site?
The duration of an implementation will depend on the size of the portfolio, the scope of project and the degree to which the client is involved. A medium-sized insurer, for example, looking for a fairly straight-forward implementation carried out by dedicated actuarial and technical consultants alone, may take up to six months.
In this time, teams will work to develop a full cash flow model, some stochastic modelling and decision management rules. In that standard implementation, users then need to be trained so they understand the full range of functionalities, so they are confident in using the tool and understand how to carry out testing and reporting.
No-one is going to be an expert after just a couple of months, so this needs to be considered part of the overall implementation. Over time, however, we typically find that clients become fully proficient with the tool and able to carry out all of their maintenance and future coding developments.
Most recent significant update:
RNA Analytics has released an updated version of its R³S financial and risk modelling software 3.1. With R³S release 3.1, RNA Analytics has focused on improving performance and functionality of the software suite. The enhancements in this release are based on market requirements, client feedback and input from our internal R³S users worldwide, which build on the software’s existing strengths.
Version 3.1 enables users with the R³S Enterprise option to distribute record by record models across multiple machines. This avoids splitting models to allow them to run in parallel on multiple machines as well as allowing individual models to be calculated much faster.
The release also includes many additional enhancements, from new functions to performance improvements. One of the larger enhancements is the new record level output, that allows users to output projected values at a record level as sought after for IFRS 17 reporting.
This new output is much more efficient as it reduces the memory required by models and improves performance. We will be releasing additional enhancements to the R³S software suite more frequently in order to meet these constantly evolving requirements.
Planned future enhancements:
- SaaS based platform is planned to launch next year
- Cloud-based workflow tool with business intelligence(BI) reporting
- Step-by-step distribution
How does your solution integrate with third-party systems or in-house systems?
If an insurer is looking to change their entire system, there will be questions over infrastructure integration processes and hardware as they will want to make sure the tool can be integrated into their existing IT. They will need to know if they need to acquire new hardware, or if they will have to change their data warehouse in case the tool cannot connect with their own existing systems.
With the R³S Toolkit, organisations can integrate the running of R3S Modeler within an existing infrastructure allowing full automation. It allows the seamless integration of the modelling within existing governance infrastructure, so clients do not need to purchase a specific workflow engine or change existing processes.
One of R³S Modeler strengths is also its flexibility to integrate with any input data format, removing the need for pre-processing or specific formatting of data, and also as of release 3.0, R³S Modeler outputs can also be written directly into third party database systems. On the outputs this again removes the need for manual or slow additional integration process steps to reduce operational risks and improve efficiency.
What is the key attribute of your product(s) that differentiates it from your competitors?
The R³S Modeler tool offers enormous flexibility and an open, and visual architecture where nothing operates as a black box.
The systems modular approach has the overriding concept of only needing to code something once, then the ability to drag-and-drop that component to reuse it in other parts of the model.
This provides a very efficient and very linear glide-path for model development from creating a single cash flow liability model, to a dual basis EV type calculation, to ALM modelling and then to stochastic or even nested stochastic modelling. At each stage of this process users only need to code the extra complexities involved and simply reuse all the other areas previously created.
This model development approach, together with the constantly evolving system architecture to make effective use of the latest hardware and computing availabilities, makes R³S Modeler a very efficient tool capable of modelling and projecting the most complex products and dynamic ALM decision rules painlessly.
As well as providing standard code for regulatory needs such as IFRS 17 the library is also being expanded into non-life modeling, allowing companies to have a single tool for all life and non-life modelling and reporting accelerating any implementation project.
What trends are you seeing in terms of customer demand?
The pace of change we have seen in the last decade is picking up, fast, and forward-looking insurers are turning to technology to keep them multiple steps ahead. However, to do that, insurers must first recognise the major force of technological change - which pervades all other trends.
And with investment in advanced actuarial analytics expected to continue on a growth path, insurers can expect to be able to offer more tailored recommendations, enjoy a constantly improving understanding of customer behavior, and gain greater market knowledge and therefore profit through better managed portfolios.
There is no going back, and we are excited to be on this rewarding journey with our clients. But we also recognise that an investment in technology is one of the most important decisions an insurer can make and carries an investment risk of its own.
The R³S software suite is a software solution for financial, risk, and actuarial analysis.