September 25th, 2017

Guy Carpenter Advances Capital Modeling Capabilities with MetaRisk® 10

Posted at 3:30 AM ET

Guy Carpenter & Company today announced the launch of MetaRisk® 10, which significantly enhances automation, adds support for A.M. Best’s new stochastic-based Best’s Capital Adequacy Ratio (BCAR) and enables modeling of “hours clauses.”

While automation is not new to the platform, MetaRisk 10 builds on prior advances by incorporating innovative open-source IronPython scripting with its proprietary MetaRisk ModelBuilderTM to offer a better user experience (UX) and unparalleled speed and efficiency when building and updating models. This powerful functionality creates models via loading parameters from common external applications such as SQL or Microsoft® Excel®, improving the performance of MetaRisk’s suite of risk and capital modeling tools.

“MetaRisk has featured elements of automation for years,” said Steve White, Chief Actuary and Head of Enterprise Analytics for Guy Carpenter. “However, the release of MetaRisk 10 brings automation to the forefront, making our UX more efficient than ever. Companies can now build or update models in mere minutes, saving them hundreds of accumulated hours in parameterization time.”

Further, while support for current BCAR calculations is maintained, MetaRisk 10 now empowers stochastic BCAR analysis as well.  Often the most stringent capital hurdle a company faces relative to other rating agency and regulatory requirements, BCAR - and soon, stochastic BCAR - represents the most important capital management consideration for many companies. By adding support for stochastic-based BCAR calculations, MetaRisk 10 increases modeling transparency and allows for “what-if” scenarios.

“Being able to accurately model stochastic BCAR scores is becoming a necessity for management teams looking to conduct planning and financial forecasting with confidence,” said Tom Hettinger, Strategic Advisory Leader for Guy Carpenter.

MetaRisk 10 now allows appropriate modeling of “hours clauses” as well, enabling companies to structure ideal coverage in a competitive reinsurance market. MetaRisk’s unique timeline simulation combined with the new ability to stress test different “hours clauses” allows analysts to better define the impact of reinsurance.

MetaRisk 10 also offers seamless integration of policy year and accident year data, allowing for appropriate treatment of both risks attaching and losses occurring reinsurance contracts - often a challenging complexity in capital modeling. New functionality also includes enhanced correlation methods such as integrating aggregate correlation and common shock within the timeline-based framework.

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