Guy Carpenter & Company, LLC, the global risk and reinsurance specialist and member of Marsh & McLennan Companies (NYSE: MMC), announced the launch of MetaRisk Reserve 3.0, the latest version of this powerful reserve risk modeling tool.
MetaRisk Reserve 3.0 now delivers improved Solvency II reporting. In addition, MetaRisk Reserve 3.0 has been seamlessly integrated with MetaRisk 7.2®, Guy Carpenter’s premier risk and capital management decision-making tool, to produce reserve event files.
"MetaRisk Reserve 3.0 is the latest example of Guy Carpenter’s commitment to innovation and improvements in technology as insurance companies look for every competitive advantage in the increasingly complex global insurance environment," said Don Mango, Vice Chairman and Head of Enterprise Analytics for Guy Carpenter.
Awarded a U.S. patent earlier this year for its unique system for determining loss reserves, MetaRisk Reserve 3.0 enables clients to capture historical economic trends, such as inflation, in order to get a better understanding of how those trends can affect the loss reserves of their companies. MetaRisk Reserve 3.0 can be integrated into a spreadsheet so that analysis can be performed with any data.
Reserve risk is the largest risk on many insurers’ balance sheets and affects both solvency and earnings volatility. The biggest driver of reserve deficiencies are changes in calendar year trends, such as increases in inflation. Most reserving models cannot capture inflationary trends and as a result, ignore this risk. MetaRisk Reserve 3.0, however, measures the inflationary trends in insurers’ loss triangles – making it the most current approach to achieving a true and transparent view of reserve positions.
With its cutting edge features, MetaRisk Reserve 3.0 also provides insurers the ability to more precisely assess the impact of reserve deterioration on profits and capital, and become more compliant with rating agency and upcoming ORSA requirements.
The predictive modeling capabilities of MetaRisk 3.0 enables companies to quantify reserve risk and consequently, allocate capital more effectively, refine reinsurance strategies and improve enterprise risk management.