Aon Benfield has launched ReMetrica for Life, Health & Pensions in order to evaluate the key risks of long term products and more accurately influence reinsurance purchases, predict cash flow and analyse financial strategies.
ReMetrica has been developed, according to Aon Benfield, to provide a fully stochastic framework that allows insurers and their actuaries to answer the challenges being posed by “regulations, rating agencies and shareholders”.
Rather than looking at individual scenarios, this approach means companies can take into account the frequency and duration of events that could trigger claims—plus explore their variations to allow for uncertainties in the results.
Aon Benfield has also claimed that ReMetrica will improve Solvency II infrastructure, effectively evaluate many reinsurance structures in one simulation and produce models within a particular client’s risk appetite.
Irfan Akhtar, head of development for ReMetrica for Life, Health & Pensions, said: “Aon Benfield has undertaken extensive development over the last four years to bring the best of ReMetrica’s stochastic modelling to its life, health and pensions clients.”
“Unlike most of its peers, the platform has been built as a stochastic tool from inception, rather than simply adding to a deterministic model, and also uses a ground-breaking approach to modelling multi-states.”
The multi-state model concept underpins modelling for long term business within ReMetrica and means that actuaries can now map the journey of policyholders throughout their lives.
Traditionally this has been used for health and disability modelling but ReMetrica can apply this to all lines of business including assurance and annuities.
