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    ESG (Economic Scenario Generator) Software of the Year: Moody's Analytics

    March 2021

    ESG (Economic Scenario Generator) Software of the Year: Moody's Analytics

    InsuranceERM Annual Awards 2021 - UK & Europe

    ​Written by InsuranceERM.

    In a year where market movements and economic trends have been at the extremes, Moody's Analytics has cemented its reputation as a provider of economic scenario generator (ESG) systems, and claims the title of best ESG software for the second consecutive year.

    Among its core offerings, the firm aids assessment of group-wide economic and regulatory capital to help clients develop appropriate capital management strategies. The provider also offers "best of breed" models to calculate insurance liabilities across accounting standards such as IFRS 17 and regulations including Solvency II.

    "In general, Covid-19 has led to a need for firms to better understand the drivers behind the changing risks in their business, and ensure they have understandable and accessible tools to support their quantitative analysis," says a Moody's Analytics spokesperson.

    Following the outbreak of the pandemic, the company introduced freely available monthly calibration services, previously quarterly, to all its clients from the end of March to the end of September 2020.

    It also moved its two-day training workshops to a fully online training format, which the firm says has been used extensively by clients in the Nordics, Hong Kong and Japan.

    In addition, the spokesperson says the firm has provided both deterministic and stochastic scenarios, based on different assumptions related to the pandemic, to support stress testing analysis.

    Going forward, Moody's Analytics is predicting increased usage of the cloud by firms to support stochastic scenario generation needs, and is making plans accordingly.

    "We continue to invest heavily in our scenario generation software. Our calibration and modelling content is also continuously evolving to meet emerging and dynamic regulatory requirements," says the spokesperson.

    These requirements focus on yield curve modelling, IFRS 17 standards, Solvency II method changes and climate assumptions.

    The judging panel also praised the firm's ESG software for providing wide coverage of financial and economic factors and its ability to meet the latest needs in multiple markets worldwide.

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