MetaRisk Reserve 4.0 provides a new, simplified interface that gives users the ability to work with multiple lines of business in a single workbook, as well as multiple reserve models in a single line of business. In addition, MetaRisk Reserve 4.0 upgrades the available statistical models to quantify reserve risk and model future inflation across multiple segments by giving users more flexibility to help with Solvency II and ORSA requirements.
“MetaRisk Reserve 4.0 helps clients better understand and interact with the drivers of reserve risk,” said Steve White, Chief Actuary and Head of Enterprise Analytics for Guy Carpenter. “This new release furthers our commitment to developing a broad spectrum of economic capital modeling solutions, which enables insurers of all types and sizes to more effectively assess key risks, benchmark risk profiles, allocate capital, meet regulatory and rating agency requirements and strategize for the future.”
Reserve risk is the largest risk on many insurers’ balance sheets and affects both solvency and earnings volatility. Changes in calendar year trends, such as inflation increases, are the biggest drivers of reserve deficiencies. Most reserving models cannot capture inflationary trends and, as a result, ignore this risk. MetaRisk Reserve 4.0, however, measures the inflationary trends in insurers’ loss triangles - making it the most current approach to achieving a true and transparent view of reserve positions.
Awarded a U.S. patent in 2013 for its unique system for determining loss reserves, MetaRisk Reserve 4.0 enables clients to capture historical economic trends, such as inflation, in order to get a better understanding of how those trends can affect the loss reserves of their companies. MetaRisk Reserve 4.0 can also be incorporated into a spreadsheet so that analysis can be performed with any data.
MetaRisk Reserve 4.0 is seamlessly integrated with MetaRisk 7.3®, Guy Carpenter’s premier risk and capital management decision-making tool, to produce reserve event files. MetaRisk Reserve 4.0 can be used with MetaRisk 7.3 or on a standalone basis.