Actuarial consultancy OAC, a subsidiary of Broadstone Group, has launched Summertime, a new asset projection tool for investment managers working with insurers.
The tool can take an investment manager’s asset data input, and calculate the solvency measures for any proposed strategies they present.
It aims to address investment managers' demand for greater clarity following Solvency II reforms and insurers' increased focus on solvency risk factors.
According to the company, solvency calculations have traditionally been performed by the actuary, so investment managers have been unable to transpose their investment strategy into solvency measures.
Together with actuarial analysis, the tool allows investment managers to see the impact of their decisions on solvency, providing an enhanced service to insurers’ boards.
Summertime is also able to support insurance companies with in-house actuarial or investment teams that can analyse asset data.
Darren Richards, chief executive at OAC, says: “This tool has the capability of stress-testing assets under market risk scenarios to understand how strategic investment decisions impact insurers’ solvency.
“Post Solvency II, we have seen a growing board-level focus on solvency requirements, hence the importance of stress-testing assets and strategic investment decisions against market risks.”
He also adds: “The ability to calculate the solvency impact of any proposed strategies will enable investment managers to provide a far superior service to insurers’ boards.”
