Risk and Capital Management

Risk modelling expertise

The management and modelling of risks is one of the most important areas for our clients. A firm’s risk profile – and how this is managed – not only affects the security of policyholders, but also drives returns to shareholders.

Insurers have invested significantly in their capital models and in getting these approved by the regulators. They are keen to ensure that models keep pace as business plans change, as new asset classes emerge, and as the regulators continue to produce new guidance.

We can partner with you to ensure that your models remain at the cutting edge. We are able to draw on expertise from across the industry and can be relied upon to provide straightforward practical advice.

Recent assignments

• Providing validation support for an insurer looking to move from a partial to a full internal model
• Secondment to help with the development of a major model change application
• Acting as Head of Model Validation on an interim basis

How we helped a major insurer

A major insurer was looking to fill its Head of Model Validation model on an interim basis. We provided a cost-efficient solution while also allowing the firm to benefit from the skills of an acknowledged industry expert. In this role we successfully helped our client by:

• Reporting on the validation activities carried out over the year – including recommendations for future improvements
• Producing a plan for validation activities over the coming year
• Reviewing model documentation
• Performing a holistic review of the internal model

With our help, the firm was able to meet its deadlines and to ensure that its model – including the latest developments – remained appropriately validated.