Aon Benfield explains why ReMetrica is ideal for Solvency II.
As Solvency II nears fruition, the pressure on firms to produce internal capital models grows ever stronger. This is inherent in the approach, with QIS5 bringing sharply higher capital requirements, and also in the regulatory response, with regulators such as the FSA in the UK pushing firms to advance beyond the Individual Capital Assessment era and commit substantial resource to developing in-house models.
For many firms, this represents a step change from their previous business processes and usage of modelling. Three key Solvency II requirements represent particular challenges:
- Use Test—The company must use the internal capital model for business decisions
- Auditability test—The user must be able to audit its modelling process
- Sensitivity testing and calibration
Passing the Use Test with ReMetrica
Aon Benfield, Solvency II, ReMetrica