Guy Carpenter Launches Updates to MetaRisk Capital Modeling Tools

Guy Carpenter & Co. announced the launch of MetaRisk Reserve 5 and MetaRisk 9, the latest updates to its suite of capital modeling tools.

MetaRisk Reserve 5 adds a rich application program interface (API) that embeds within each client’s existing modeling interface to automate all aspects of a reserve risk study, which allows the actuary more time for critical analysis, Guy Carpenter explained in a statement.

The update also includes a new Bornhuetter-Ferguson model, expands aggregation capabilities, and facilitates cloud computing to align with industry trends.

“As insurance companies in an increasingly complex business environment look for competitive advantage, the updates to MetaRisk Reserve and MetaRisk illustrate Guy Carpenter’s commitment to innovation by leveraging improvements in technology and reserving methodologies to provide clients dynamic, easy-to-use platforms to manage capital more effectively,” said Steve White, chief actuary and head of Enterprise Analytics for Guy Carpenter.

Reserve risk is the largest risk on many insurers’ balance sheets, but many models ignore calendar year trends, such as inflation, that drive it, Guy Carpenter continued. “MetaRisk Reserve, which was awarded a U.S. patent in 2013 for its unique system of determining loss reserves, now measures inflationary trend in loss triangles to capture its historical impact.”

The platform provides a current, comprehensive and transparent representation of reserve quality, when combined with traditional reserve modeling capabilities “that have long set the standard for the industry,” Carpenter said.

Additional features include predictive modeling capabilities and a new ability to integrate into a spreadsheet to analyze any type of data. These features further enhance an insurer’s ability “to assess reserve deterioration’s impact on profits and capital, refine reinsurance strategies, and improve enterprise risk management,” the company said.

Complementing the MetaRisk Reserve update, Guy Carpenter’s capital modeling platform has been upgraded with the release of MetaRisk 9. Performance enhancements will shorten simulation times by 20 to 30 percent and allow external tables of operations and parameters to be used to create or update objects with MetaRisk ModelBuilder, improving automation.

Additional improvements in the areas of correlation and indexes also further MetaRisk’s capabilities in capital modeling, the company explained.

Source: Guy Carpenter