Independent insurance intermediary Benfield has released an updated version of its dynamic financial analysis financial modelling tool ReMetrica.
Benfield said ReMetrica version 4.0 offered increased flexibility and sophistication from a wide range of modelling applications.
The enhanced functionality would help companies adjust to forthcoming changes, such as the FSA's capital adequacy calculations and the wider European changes anticipated under Solvency II, said Benfield.
Version 4.0 contains a number of new features for simulating underwriting risk, reserving risk (both retrospective and prospective), reinsurance credit risk, and investment risk. Companies can view their results by accident year, underwriting year and calendar year, and observe risk emerging in a way consistent with their own reserving approach.
Benfield said the software would enable users to simultaneously view their results under different accounting standards. There are also new features that simplify the creation and maintenance of large models.
Benfield head of risk software Paul Maitland said: “Regulators around the world have been looking at how insurance companies fail.
“They have found that the current formulaic approach of the ratios of claims to premiums is often the last sign that a company is in trouble. As a result, regulators are now looking at ways to prevent future failures by ensuring management are monitoring their risks more effectively.
“In particular, the forthcoming regulations will be looking for managers to demonstrate they have sufficient capital for the risks they are exposed to. This requires modelling of the risks and a clear understanding of the assumptions used.
“The new release of ReMetrica is designed to meet these needs.”
