Aon Benfield Analytics, the research and analytics division of Aon Benfield, a reinsurance intermediary and capital advisor, today announces the launch of a Solvency II solution for the reinsurance industry.

The new tool, S2Metrica, is based on the architecture of Aon Benfield’s dynamic financial analysis product, ReMetrica.

S2Metrica is designed to assist reinsurers to prepare and adapt their business models for the forthcoming Solvency II regime – a risk-based supervisory framework for European Union (EU) reinsurers, which is scheduled to be introduced across the EU in 2012.

The automated solution converts an insurer’s Quantitative Impact Study (QIS4) spreadsheet – the latest Solvency II field-testing exercise conducted by the European Commission – into a Solvency II-compliant internal model.

Using S2Metrica, Solvency II output can be achieved within just one day, compared to the hundreds of development hours that the process would take without a dedicated tool, allowing the user to concentrate on important business processes such as model parameterization, and sensitivity testing of the model output.

Aon Benfield Analytics CEO Bryon Ehrhart, said “We recognize the importance of the Solvency II regime and the impact it will have on European Union insurers. Developing an appropriate internal model is a time-consuming and expensive process. S2Metrica is an easy-to-use and cost effective tool that provides our clients with the type of financial analysis required by EU regulators under the Solvency II protocol. The tool will help insurers to compute Solvency II capital requirements, optimize their capital sources related to the Solvency II standards, and position them well for a period of continued evolution of capital models, as the lessons of the credit and liquidity crisis are moulded into new capital and leverage rules.”

S2Metrica can operate either as a standalone product with a ReMetrica engine in the background, or within the ReMetrica environment. Its flexibility and ease of use negates the requirement for extensive ongoing training and support, claims the company.






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