RiskIntegrity™ Suite - Moody's Analytics

Type of System

  • Analytics
  • Capital modelling
  • Data management
  • Economic capital aggregation
  • Economic scenario generator
  • End-to-end ERM or Solvency II solution
  • Internal/external reporting
  • Risk Management
  • Stress testing

Type of Platform

  • Cloud
  • Server-based
  • Web-based
  • Grid
  • SaaS

Most recent significant updates:

RiskIntegrity™ IFRS17

RiskIntegrity™ IFRS 17 manages the complexity of the IFRS 17 contractual service margin and associated calculations by filling the void between actuarial modelling systems and the accounting general ledgers.

RiskIntegrity™ Insight

A new strategic tool that allows insurers to project financial and risk metrics under alternative forward-looking economic and insurance scenarios. The configurable modelling and analytics platform, helps management visualize the impact of these scenarios on key metrics, and provide insight into the dynamics of the business.

It can project multiple financial statements in combination with a flexible dashboard that enables management to perform drill-down and comparison analyses across different business forecasts. The modelling and analytics platform leverages output from existing Moody’s Analytics modelling infrastructure such as the AXIS™ actuarial system.

In addition enhancements for insurers risk and solvency enterprise risk management (ERM) needs. A summary of the main developments as follows.

RiskIntegrity™ - Standard Formula

  • Risk Margin Simplification Level 1: Projection of SCR at Risk Module Level. For the purpose of the risk margin calculation, it is now possible to project the future SCR RU at any level of the risk hierarchy using the ratio of the best estimate at that future year to the best estimate at the valuation date.
  • For customers who import valuations of cash flows, it is now possible to compute the currency risk.
  • Future Capital Requirement: Closed Formula for Premium and Reserve Risk. For the purpose of the simplification level 1 of the risk margin, customers can now calculate the future capital requirement of the premium and reserve risk (non-life and NSLT).
  • Future Capital Requirement: Closed Formula for Operational Risk. For the purpose of the simplification level 1 of the risk margin, customers can now calculate the future capital requirement of the operational risk.
  • Pooling Arrangement: Inclusion of Additional Risks in the Risk Mitigating Effect.
  • Counterparty Default Risk: Full Calculation of the Risk Mitigating Effect per Reinsurer.
  • Enhancements for the purpose of the automatic generation of the S.01.02.01 QRT and the S.01.02.04 QRT.
  • Simplification of the Data model on Ceded Premiums. Previously, the software proposed a single percentage share between reinsurers, whatever the year or the type of premium (for example, earned premiums or written premiums). Now, you can also enter different amounts of ceded premiums per year and reinsurer.

RiskIntegrity™ Asset Core module

  • Improved asset coverage for bond and FX options, introduces the capability to price and stress bond options in line with the regulatory solvency calculation.
  • Enhanced exception handling for bond calibration, feature improves exception handling of the simulation process, where the 'Implicit Credit Spread' approach is used to calibrate spreads from input bond prices.

Regulatory Reporting

  • Updates to enable clients to meet their 2018 Annual and Quarterly Regulatory submission commitments (including Solvency II reports, Financial Stability reports, ECB reports, and Public Disclosure reports).
  • Additional National Specific Templates
  • Improvements of performance for multiple components or steps, such as the loading of regulatory reports configuration, the processing of validation checks and post-publication rules, the generation of XBRL files, and the display of important pages like Reports Summary and Check Results.
  • An update has been made to the XBRL generation process so that unused namespaces do not appear in the XBRL instance. This enhancement has been performed because several regulators started to reject files that contained unused namespaces.

RiskIntegrity™ Internal Model

Our Internal Model software supports insurers in the automation of processes to calculate and report their internal model covering SCR calculations and other global regulatory regimes, or to manage internal economic capital. Our Internal Model software uses three key modules: RiskIntegrity Capital Aggregator, RiskIntegrity Proxy Generator, and Risk Scenario Generator.

RiskIntegrity™ Capital Aggregator

  • The RiskIntegrity™ Capital Aggregator has been migrated to the common insurance platform, shared with other insurance products. The platform provides shared architecture, upon which specific software solutions are implemented.
  • Chart export facility introduced on the results summary screen to enable clients to export allow chart visuals and underpinning data.
  • Data Storage enhancements to improve system performance.
  • The user interface has been enhanced to enable import and export of CSV files containing data
  • Unicategory calculations
  • The configuration of unicategory calculations has been relaxed to allow overlapping nodes to be selected on the Risk Hierarchy. For example, Equity Risk and Market Risk Capital Requirements can be computed in a single run of the system.

RiskIntegrity™ Proxy Generator

  • Introduction of a new stress function for the G3 Credit Model. This function provides flexible control over stressed credit spread surfaces when using the CreditG3 model.
  • Enhancements to extend the security and usability of the application.
  • To specify an alternative set of user credentials instead of using Windows Integrated Authentication. This enables the services to be run on a different domain to the front end client application, such as on a cloud architecture.
  • Support for the use of SSL encryption for web services.
  • The Application Programming Interface (API) has been extended to include functionality to perform additional administrator functions.
  • The range of output formats for the proxy functions produced by the RiskIntegrity Proxy Generator Function Fitting functionality has been extended. You can now output the proxy function with the ranges of each risk factor included in the function, so that it can be used to validate that risk factor values used in downstream processes are within the ranges used to fit the function.

Risk Scenario Generator

  • Added several new outputs across a range of risk drivers which enable more control over the compounding convention of outputs.
  • Enhancements to parameter sets that improve the usability of the user interface.
  • Enhanced the real yield curve modelling by enabling multiple real yield curves to be modelled simultaneously for a single economy.
  • An Alternative Inflation model which enables clients to choose the nominal and real yield curve that define breakeven inflation, and therefore supports more flexible modelling of alternative inflation indices.
  • A new (pseudo) random number generator, Mersenne Twister, alongside the existing Wichmann-Hill algorithm. With an option to apply moment matching adjustments to the shocks, which adjusts the underlying distribution of shocks to correct for the effects of sampling error.
  • Added a random number scrambler parameter to equity assets which enables greater control of the random number streams feeding into those models, for example, to help fix failing martingale tests.
  • Added an option to disable analytical volatility and price calculations when using the Swaption Test Analysis test for models where this is produced. This can speed up run times for certain configurations.

RiskFoundation™ Platform

  • Improvements of performance for multiple components or steps, such as the loading of regulatory reports configuration, the processing of validation checks and post-publication rules, the generation of XBRL files, and the display of important pages like reports summary and check results.
  • Support for the latest requirements regarding the regulatory reports submission in XBRL format EIOPA.

Other Features

The offering facilitates

  • Curve-fitting
  • Least-squares Monte Carlo
  • Solvency II standard formula
  • Solvency II internal model
  • IFRS 17

Integration with third-party or in-house systems?

The solution is based on open technology and can integrate with third-party systems.

Implementation and Costs

Typical implementation costs:

The RiskIntegrity software is based on a subscription or licence model. Price depends on size of client and the number of modules purchased. Our modularity and pricing allow the solution to meet various requirements, from large Tier 1 insurance groups to smaller solo entities. Regulatory updates for Solvency II as well as evolution of the framework are part of the subscription or maintenance.

How long does your software take to implement on site?

Implementations is highly dependent on the client size and project scope.

Key attributes of product:

The award winning RiskIntegrity™ Suite has been extended in 2018 to address insurance companies’ needs in two significant areas. For the new IFRS 17 accounting standard that applies to insurance contracts, and for business planning, ORSA and Stress Testing. While continuing to enhance the capability for risk and solvency ERM needs, including both regulatory and internal management requirements.

For IFRS 17 our solution goes beyond production of simple calculations. To deliver an efficient and well-controlled production process that delivers not only disclosure focused reports but also meaningful business insight and interface with existing systems.