In the InsuranceERM Americas awards 2023 Moody’s and Moody’s RMS won three awards
» Catastrophe risk modeling solution of the year
» Economic Scenario Generator software of the year
» Stress scenarios software of the year
Catastrophe Modeling
The Moody’s RMS Intelligent Risk Platform continues our passion for innovation as it looks to tackle the complexities of risk analytics and modeling, to integrate required capabilities in a unique way. Purposely designed for P&C insurers, reinsurers, brokers, managing general agents (MGAs), cover holders, and insurance-linked securities (ILS) funds, the platform offers a comprehensive risk analytics solution.
The platform is not limited to catastrophe risk modeling, it looks to cater to all types of risks. It has already gone beyond the integration of Moody’s RMS modeling capabilities by incorporating third-party modeling capabilities, and at our recent Exceedance 2023 conference in New York, we showcased how the Intelligent Risk Platform will seamlessly incorporate both third-party models and our customer’s custom models.
From the outset, the Intelligent Risk Platform has been built upon three fundamental principles: open, modular, and unified. It is worth delving into these principles in more detail:
» Open Platform: The Intelligent Risk Platform is built to ensure that data is not locked away, as the platform remains open with REST APIs and SQL Access to facilitate seamless integration into their existing systems.
» Modular Platform: Unlike other platforms that demand an ‘all-or-nothing’ commitment, the Intelligent Risk Platform delivers the flexibility for customers to select and integrate specific components into their risk modeling, underwriting, and exposure management workflows.
» Unified Platform: Traditional systems often suffer from ‘data islands and isolated applications that hinder collaboration and communication. In contrast, the Intelligent Risk Platform unifies models, data, and analytics into one cohesive system.
Scenario Generator
Our market leading Scenario Generation solutions support both new and existing customers in many areas, such as:
Assessing group-wide economic and regulatory capital, developing capital management strategies, and pricing complex embedded guarantees and options. These capabilities are fully transparent, and, using best-in-class models, integrated with leading asset and liability modeling (ALM) software. All supported by a range of global content and calibration services.
Winning the InsuranceERM Americas award for Economic Scenario Generator software for a third consecutive year, highlights the continuous evolution and innovation to help our customers meet the demands of a rapidly changing insurance landscape.
Our dedicated team of researchers and advisors work directly with our customers on new and emerging challenges. We have most recently been working with customers on the impact of inflation, and the need to support insurers in managing the financial impact of climate risk
Inflation
We have recently experienced some of the highest level of inflation over the last 30 or 40 years. market. During this period, we engaged with our customers and regulators on the impact of inflation rates in stochastic models. We delivered stress testing calibrations for different expected paths of inflation to support firms looking to understand the sensitivities of their key capital metrics. We also delivered additional beta-calibrations to allow insurers to test alternative assumptions and parameterization of the inflation model to support their discussions with internal and external stakeholders.
Through workshops, seminars, documentation, and alternative model calibrations to help them understand the scale and impact of the inflation changes on the stochastics scenario used in capital calculations and risk management processes of insurers.
Delivered stress testing calibrations to different forward looking expected paths of inflation to support firms looking to understand the sensitivities of their key capital metrics.
Financial impact of climate
Combining our financial modeling framework with the best climate science consensus, enables customers to understand the financial impacts of climate change, which is a significant focus area for the future. Bringing together our expertise in climate, natural catastrophes, economic and market risk offers insurers a deeper understanding of a more integrated approach in this challenging area.
Our Climate Pathway Scenario Service uses scenario generation to facilitate customers’ efforts to respond to ORSA and TCFD requirements to quantify the financial impact from climate related physical and transitional risks. Combining our financial modeling framework with the best climate science consensus, enables customers to understand the financial impacts of climate change, which is a significant focus area for the future. Bringing together our expertise in climate, natural catastrophes, economic and market risk offers insurers a deeper understanding of a more integrated approach in this challenging area. The scenarios can also support integration of climate risk into strategic asset allocation (SAA) and investment selection processes.
The service captures the impact on market and credit risk associated with each temperature path and covers a large range of financial outputs and assets returns for a wide range of asset classes (both on a geographical and sector basis). The service is available through an easy-to-use app that allows insurers to vary the climate assumptions (and modeling choices), and this will be further enhanced and developed early in 2023 reflecting the dynamic and emerging requirements of insurers in this area.
