Newest Versions of Patented Capital Modeling Tools Enhance Automation and Integration, Estimate Inflationary Risk, and Improve Run-Time: Guy Carpenter Introduces MetaRisk® Reserve™ 5 and MetaRisk® 9
Guy Carpenter today announced the launch of MetaRisk® ReserveTM 5 and MetaRisk® 9, the latest updates to its powerful suite of capital modeling tools built on more than 25 years of research and development.
MetaRisk Reserve 5 adds a rich application program interface (API) that embeds within each client’s existing modeling interface to automate all aspects of a reserve risk study, allowing the actuary more time for critical analysis. The update also includes a new Bornhuetter-Ferguson model, expands aggregation capabilities and facilitates cloud computing to align with industry trends.
“As insurance companies in an increasingly complex business environment look for competitive advantage, the updates to MetaRisk Reserve and MetaRisk illustrate Guy Carpenter’s commitment to innovation by leveraging improvements in technology and reserving methodologies to provide clients dynamic, easy-to-use platforms to manage capital more effectively,” said Steve White, Chief Actuary and Head of Enterprise Analytics for Guy Carpenter.
Reserve risk is the largest risk on many insurers’ balance sheets, but many models ignore calendar year trends, such as inflation, that drive it. MetaRisk Reserve, which was awarded a U.S. patent in 2013 for its unique system of determining loss reserves, now measures inflationary trend in loss triangles to capture its historical impact. When combined with traditional reserve modeling capabilities that have long set the standard for the industry, the platform provides the most current, comprehensive, and transparent representation of reserve quality. Additional cutting-edge features, predictive modeling capabilities and a new ability to integrate into a spreadsheet to analyze any type of data further enhance insurers’ ability to assess reserve deterioration’s impact on profits and capital, refine reinsurance strategies and improve enterprise risk management.
Complementing the MetaRisk Reserve update, Guy Carpenter’s capital modeling platform has been upgraded with the release of MetaRisk 9. Performance enhancements will shorten simulation times by 20 to 30 percent and allow external tables of operations and parameters to be used to create or update objects with MetaRisk ModelBuilderTM, improving automation. Additional improvements in the areas of correlation and indexes also further MetaRisk’s already industry-leading capabilities in capital modeling.