• Fair Value Report: A financial reporting component tailored to ‘fair value accounting’, including fully discounted balance sheets, premium provisions and market value margins;
• Premium Provisions: Generates the additional reserve items relating to unearned business and non-incepted obligations which are required for fair value accounting;
• Reserving: An enhanced version of the reserving logic which uses a recognition pattern approach to allow balance-sheet to balance-sheet risk to be captured in a model calibrated on an ultimate-risk basis.
Aon Benfield worked with a group of insurers, predominantly from Lloyd’s, to shape enhanced functions for underwriting year reporting to meet the market’s requirements. This will allow users to simplify existing models without reducing accuracy. Enhancements allow smaller, more compact models to improve ease of use and deliver the following:
• Calculation of reserves by underwriting year
• Allocation of reinsurance premiums and commissions by underwriting year
• Underwriting year reporting components
In addition, a new reporting component for capturing counterparty-level reinsurance default risk has been developed, as well as improved tools and interfaces including Wizard-style reporting.??Paul Maitland, head of ReMetrica at Aon Benfield Analytics, said: “Solvency II has been a key trigger in the next step of ReMetrica’s evolution. We’ve listened to and worked with both our clients and the regulators to adapt and enhance the software. It helps re/insurers to meet the proposed regulatory requirements while continuing to test different strategies and make informed business decisions.”