Milliman - CHESS
Type of System
Economic / risk scenario generator
Type of platform
Other features - the offering facilitates:
- Least-squares Monte Carlo
- NAIC Principle-based reserving
- Replicating portfolios
- Solvency II internal model
- Solvency II standard formula
What are the typical implementation costs?
CHESS doesn't require any implementation. Users only need to have an internet connection to generate scenarios tables with the tool.
How long does your software take to implement on site?
CHESS is a Software as a Service (SaaS) solution based on a secured interface between a website and a calculation engine hosted in Microsoft Azure Cloud. As a result, the solution is readily usable through a web browser. In addition, we assist our clients to setup their modelling framework (choice of the risk factors, choice of the models, …) and to develop approaches adapted to their needs, in line with the relevant regulatory guidance. This configuration phase can be settled quickly in collaboration with internal teams.
Most recent significant update:
A newly designed version of CHESS has been released and provides an enhanced interface, for a more complete (extended set of available parameters) and intuitive user experience. This version encompasses for significant optimizations, in particular relying on low-level languages, making the solution more than 50% faster. Moreover, many companies have recognized the necessity to encompass for multi-currency risk in their stochastic projections. To this extent, CHESS now allows for the modelling of an unlimited number of economies and related FX rates.
Besides, recently, we have been working hand in hand with several major data providers to deliver consistent calibrations and support to CHESS clients based on continuous accuracy, relevance, and consistency analyses of the considered sources of data.
Last but not least, CHESS now provides an extensive library of API functions callable directly from internal systems to improve automation of complex production processes.
Planned future enhancements:
In our continuous commitment to improve CHESS functionalities, the following enhancements are planned in the upcoming months:
- Extension of the catalog of models to provide a wider variety of models inspired from our clients’ needs, in particular, new risk-neutral interest rate models such as the Constant Elasticity Volatility Libor Market Model;>
- Extension of the functionalities for the construction and the validation of asset portfolios;
- Features to ease the import of multiple and combined shocks.
How does your solution integrate with third-party systems or in-house systems?
CHESS is accessible from a web-browser simplifying the management of user access, as well as remote work. It facilitates collaborative work for the production of economic scenarios in order to maximize the efficiency of in-house production processes.
In an increasingly demanding regulatory and economic environment, insurers are faced with shorter deadlines and an increased production effort. Therefore, the implementation of an efficient framework for the generation of economic scenarios has become a key milestone. Intrinsically, CHESS takes advantage of the computing power of the cloud by parallelizing processes, allowing to simultaneously run thousands of calibrations and simulations automatically saved. Furthermore, CHESS provides API services including all the relevant CHESS libraries that can be integrated within existing client architecture, to improve automation from economic scenarios configuration to the reporting of ALM results.
Eventually, CHESS also provides highly customizable features, such as:
- A fully customizable modelling framework, with features suitable for both user-friendly and advanced uses;
- Custom formats, so that the economic tables produced can be immediately plugged into any ALM solutions;
- The generation of automatic validation reports that can be customized to insurers specificities and requirements.
What is the key attribute of your product(s) that differentiates it from your competitors?
- CHESS web application is suited for both basic and advanced uses accessible from any web-browser simplifying collaborative and remote work. It integrates various functionalities in order to analyze, visualize and report the outputs produced by the models and ensure that results are in line with expectations;
- We are committed to assist our clients to design approaches adapted to their needs and in line with the relevant regulatory guidance. This comes with an exhaustive documentation guarantying traceability and auditability including mirror Excel; spreadsheets to facilitate better understanding of underlying calculations and results.
- CHESS promotes automation and integration as it offers API services that can be embedded within internal production processes;
- CHESS benefits from the power and the scalability of the Microsoft Azure Cloud, ensuring an efficient generation of thousands of parallelized sets of economic scenarios;
- Thanks to our recent partnerships with several major data providers, CHESS studies and calibrations are fostered by the use of the most appropriate source of data to each situation.
What trends are you seeing in terms of customer demand?
With the arrival of new regulations, such as IFRS 17, we are committed to help insurers to face increased production demand with shorter deadlines thanks to the scalability of our solution and the furniture of API services allowing to fully integrate CHESS into any automated system.
Besides, as a leading consulting firm in ESGs, we have been assisting our clients on ESG topics for more than 10 years, regarding ESG implementation, production, review and validation. Based on this experience, we have identified the need for improved regulatory compliance and since then, we have assisted our clients to design, justify and document approaches adapted to insurers purposes and in line with all relevant regulatory guidance.
Milliman CHESS – Scenario generation easier than ever before. Make the smart move.