Aon BenfieldAnalytics

Predict the financial future with data and analyticsReMetrica

Predict the financial future with data and analytics

Enhanced financial decision making

In a world of ever-evolving regulation and accounting standards, coupled with commercial pressures, the actuary’s role is growing in importance.

Following Solvency II and IFRS changes to name but a few, insurers are demanding more value from their investment in capital models. This trend is seeing a shift in how actuaries, catastrophe modellers and other risk analysts use models. There is a move from primarily identifying solvency capital requirements to exploring wider financial strategies such as asset allocation and business optimisation.

Using ReMetrica®—Aon Benfield’s award winning risk and capital modelling software—actuaries can harness insurers’ data to optimise financial strategies and make important business decisions with confidence. By design, ReMetrica allows global insurers, reinsurers, consultants, captives and regulators to bring insightful, risk-based financial modelling to the forefront of strategic decision-making.

Insurance and reinsurance professionals use ReMetrica for many different areas of decision-making, including:

Strategic Business Decisions

• Is my portfolio balanced?

• How can it be improved?

• Can I improve my investment strategy?

Reinsurance Pricing

• What price should I pay for a particular product?

• How will this vary if the parameters change?

Reinsurance Strategy

• Which reinsurance should I buy?

• How much should I retain?

Capital Allocation

• How profitable are my various business lines based on the cost of capital and the risk?

Business Planning

• How can I grow the business without taking on too much risk?

This trend is seeing a shift in how actuaries, catastrophe modellers and other risk analysts use models. There is a move from primarily identifying solvency capital requirements to exploring wider financial strategies such as asset allocation and business optimisation.

ReMetrica Version 7 is helping to transform the role of actuaries by introducing a new more efficient and scalable way of working. In practice, analysts will now be able to benefit from the following features:

Next generation platform

Build models without the coding• A comprehensive library of advanced components that

enable you to build a sophisticated capital model.

• Models can be understood quickly and easily by any user, removing key-man risk if a colleague leaves the role.

Access your data quicker with transparent models

• New tools such as DataGrids, Key Properties and Message Views mean you can understand and diagnose your data.

• Answer questions like, “What caused my bad year?” with model re-run.

• Easy to conduct ‘what-if’ deterministic calculations.

Core differentiators

Key features and benefitsThe core differentiators are supported by the following features:

Features Benefits

Built-in support for Python™ Full flexibility for implementing custom model logic and automation.

Rich features of a mature programming language, but simple to learn and easy to use.

Colour coding and automatic code completion.

Data at your fingertips Slick tools for looking at trial-by-trial information and debugging.

Customised reports through the embedded Excel interface

Seamless interaction between models and input/output forms.

Flexible reporting with no programming required.

Easy to create custom reports for management and regulatory reporting.

Scalable Various options to run simulations easily over multiple cores, either on a single machine or over a grid of machines (Microsoft’s HPC technology).

Fully 64-bit Allows unlimited result sets to be saved to memory.

.NET modern user interface Modern look and feel means you can work with multiple docked windows.

Enhanced random number generator ReMetrica’s new random number infrastructure ensures that numbers are consistent, regardless of the hardware that the simulation runs on. Any trial is quickly and easily reproducible, a real boon for debugging and understanding your model.

“Less time creating models and more time making decisions.”Mark Cockroft, Chief Actuary, Qatar Re

Choosing the optimal ReMetrica edition for your company

ReMetrica Edition

Description Run-time Professional Enterprise Ultimate

64-bit* The size of results that can be saved to memory can be as large as your hardware allows.

X X X X

Multi-threaded simulations

Automatically runs models multi-threaded without the need for any configuration: ReMetrica detects and runs your simulations across multiple cores (CPUs) available on your machine.

X X X X

View model results Model results can be viewed using Excel-like results views plus other tools such as DataGrids.

X X X X

Change input parameters

Input parameters are linked to the model by an Excel-like interface and can be changed to run different scenarios through your model.

X X X X

Data at your fingertips

By providing tools for you to drill down into data and rerun specific scenarios, such as your 1 in 200, ReMetrica allows you to delve into and analyse your model at a more granular level.

X X X X

Model building Create and edit model structures. X X x

Python indirect expressions

ReMetrica now supports the Python programming language for model customisation and automation. Python is quick and easy to learn and introduces powerful new features to model customisation.

X X X

Script automation and API

Automation scripts can be developed in Python. Additional, add-ins can be developed in .NET.

X X X

Batch simulation tool

A simple to use, but powerful tool is supplied to allow you to run multiple models. Incremental changes to parameters can be applied to each model run.

X X X

HPC distributed simulations

Run ReMetrica over a grid of machines using Microsoft’s High Performance Computing (HPC) technology. HPC intelligently load balances and manages jobs, meaning that the process of distributing across multiple machines is very robust. Furthermore, you just need to point ReMetrica at an HPC grid, and the ReMetrica client automatically performs set-up for you.

X X

Database results The new generation of database schema in ReMetrica Version 7 is 40 times faster than the previous generation, giving more options for storing results.

X X

Global Enterprise architecture

Ultimate Edition sits on a server stack meaning that multiple people from multiple regions can work on your ReMetrica model. The organisation can centrally control the model.

X

Enterprise model automation through Workflows

Workflows allow you to graphically build automation processes without the need for programming. This allows you to join together multiple models and inputs. Workflows provide you with an open and flexible way of mass-producing and recreating model runs, which goes far beyond writing automation scripts.

X

Advanced audit trail

Advanced audit trail features log each time changes have been made to inputs and logic. You know every time your model has been run, by whom and with what inputs and logic. This is important so you can recreate any model run in the future.

X

* Compatible with 32-bit excel

Customising your capital models

ReMetrica Software• Developing the core software• Training and support• London | Singapore

ReMetrica Actuarial Consulting• Actuarial modelling experts• Model advisory, implementation

and validation• London | Zurich | New York

ReMetrica Applications• ReMetrica, IT and data specialists• Custom products built around

ReMetrica such as PACE, AeroMetrica and CyberMetrica

ReMetrica Applications

ReMetrica Software

ReMetrica Actuarial

Consulting

ReMetrica has been designed so that you are equipped to build your own models, no matter how sophisticated or complex. Many clients are in a position to build their own models after only a day of training and we have a dedicated support desk on hand to answer any of your queries.

However, as commercial and regulatory demands continue to grow in scope and sophistication, so do the models and this is when the ReMetrica family steps in.

Our team of actuarial consultants delivers customisable modelling solutions, including model advisory, implementation and validation services. Clients benefit from a broad knowledge of emerging market practices, capital model evolution, regulatory requirements and modelling techniques, plus software implementation, to deliver efficient and valuable modelling solutions.

Case StudyDelivering a robust Solvency II model implementation for a start-up reinsurer

ChallengeA start-up UK reinsurance company engaged Aon to implement its internal model in ReMetrica, working to a very tight deadline. The company was due to start writing business the following year and a key requirement was the ability to monitor the modelled financial position versus its existing spreadsheet-based business plan model at regular intervals. The management team required a 5-year model, which was capable of producing financial statement forecasts at monthly intervals.

SolutionWe worked with the company to design a robust and efficient model structure in ReMetrica that was validated through a series of tests and met the needs of all key stakeholders. The final phase of this project involved a comprehensive handover of the model to the internal capital team, many of who were new to the ReMetrica platform. We ran a number of workshops, explaining each aspect of the model in turn and developing test cases to illustrate the model functionality.

Benefits

The findings enabled the senior management team to assess how the financials would develop as the new business grew.

“Aon’s consultants’ market knowledge and depth of technical expertise helped us develop the optimal structure.”Gary McInally, Chief Actuary Flood Re

Product Description

ReMetrica in the Cloud

ReMetrica allows you to extend your current processing power by sending models to your own Virtual Private Cloud. ReMetrica in the Cloud uses the latest specification servers to build a processing grid on-demand for your model. This means you only pay for the processing power that is used.

PACE Aon’s PACE (portfolio accumulation control & evaluation) is a single tool that enables reinsurers to price programmes, maintain their portfolio and quickly see the gross and net probable maximum loss (PML) by peril/region from a number of different perspectives. PACE integrates into the underwriting workflow.

Portfolio Optimiser Portfolio Optimiser provides analysis into the optimisation of risk and return of a portfolio using the conditional value at risk (CVaR) measure. Portfolio Optimiser seamlessly interacts with ReMetrica result allowing you to easily define an optimisation problem.

CRAFT CRAFT (the Curve for Risk Analysis Fitting Tool) allows you to fit statistical distributions to sample data. Being focused on risk analysis, CRAFT is designed to fit bounded datasets, and includes an array of tools for analysing the fitted distributions from a risk analysis point of view.

ASTRA ASTRA is an Excel-based Solvency II Standard Formula tool, developed by Aon in response to the demand for a simple, easy to use and cost effective solution to completing the standard formula calculation.

AeroMetrica AeroMetrica is a ground-up aviation excess of loss pricing model and aggregation tool. It sets the benchmark for excess of loss pricing for major risk business, allowing for detailed pricing, volatility and reinsurance optimisation analysis.

CyberMetrica CyberMetrica provides insurers with a way to identify key points of aggregation, and develop bespoke scenarios to model crucial concentrations of risk across the full range of first and third party cyber coverages.

Making the most of ReMetrica

Our suite of ReMetrica Applications means that you can integrate systems to enable a wider, enterprise view around underwriting, portfolio optimisation and Solvency II reporting.

Our specialist team of developers has created a number of applications to build on the core strengths of ReMetrica:

When you choose ReMetrica, we welcome you into the community to benefit from:

Dedicated user support

• Customised training including regular user workshops.

• Expert help desk via telephone or email to share solutions quickly, meaning you do not have to spend time or resources looking for answers.

• ReMetrica support website, which includes the latest news and releases, details of upcoming events and training, and various other resources for you to download.

• Annual conferences and workshops in the US, London, Singapore and Tokyo for users to build their technical knowledge, network and discover ReMetrica’s latest enhancements.

From the practical training sessions and expert helpdesk to

the annual user conference, the high level of ReMetrica support means we can build our models efficiently and we feel part of the ReMetrica community.

Christof Grass, Head of Cat Perils, Group Reinsurance, Zurich Insurance

Contact

Awards

Paul Maitland (APAC)paul.maitland@aonbenfield.com

Dean Roberts (EMEA)dean.roberts@aonbenfield.com

Michael McClane (Americas)michael.mcclane@aonbenfield.com

Aon plc (NYSE:AON) is a leading global

professional services firm providing a broad

range of risk, retirement and health solutions.

Our 50,000 colleagues in 120 countries empower

results for clients by using proprietary data and

analytics to deliver insights that reduce volatility

and improve performance.

© Aon Benfield Inc. 2017.All rights reserved. This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. This analysis is based upon information from sources we consider to be reliable, however Aon Benfield Inc. does not warrant the accuracy of the data or calculations herein. The content of this document is made available on an “as is” basis, without warranty of any kind. Aon Benfield Inc. disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Members of Aon Benfield Analytics will be pleased to consult on any specific situations and to provide further information regarding the matters.

For a ReMetrica demo, please contact your local Aon Benfield broker or:

PACE—Insurance Times: Technology Innovation of the Year

ReMetrica for Life, Health, and Pensions— Reactions: Technology Solutions Provider of the Year

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