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Capital Calculation Capabilities

Core computational and scenario modeling abilities for capital requirement calculation.

Aggregation Logic Flexibility: Customizable aggregation (e.g., risk types, business units).
Counterparty Default Modeling: Handles capital calculations for credit and counterparty risks.
Internal Model Support: Supports development and operation of custom internal models.
Look-through Capability: Ability to calculate capital at granular (e.g., fund, asset) level.
Partial Internal Model Functionality: Ability to combine standard and internal models for calculation.
Portfolio Import Capacity: Volume of insurance policies/assets/portfolios the system can handle in a batch.
Scr Calculation Speed: Time to compute solvency capital requirement per full calculation cycle.
Standard Formula Calculation: Implements prescribed regulatory standard formulae for solvency capital.
Stochastic Modeling: Capability to run stochastic simulations for loss and risk distributions.
Stress and Scenario Testing: Runs what-if analysis for macroeconomic and event-driven scenarios.

Cost Management

Features relating to pricing, budgeting, and ongoing system costs management.

Automated Cost Reporting: Dashboards and statements of system usage and incurred costs.
Bundled Support Services: Support, upgrades, and training included in a single fee.
Capacity-Based Tiering: Pricing based on data/portfolio size or user numbers.
Cost per Calculation Run: Average cost of a full capital calculation cycle.
Discounts for Volume/Scale: Bulk pricing for large portfolios or multi-entity installations.
License Utilization Monitoring: Tracks product license usage against maximum allowed.
Maintenance and Upgrade Fees: Visibility of ongoing support/upgrade charges.
On-demand Infrastructure Pricing: Cost of compute and storage usage is tracked and managed if on cloud.
Pay-per-Use Options: Flexible pricing for occasional or burst usage.
Transparent Pricing Model: Clear and understandable license and usage fees.

Data Integration & Management

Features supporting data ingestion, quality, and interfacing with upstream and downstream systems.

Audit Trails for Data Changes: Comprehensive logs of all data edits and processes.
Automated Data Reconciliation: Helps match records between up- and downstream systems.
Bulk Upload Capacity: Maximum file size or record count handled in a single batch upload.
Core Insurance Platform Integration: Connectors to policy, claims, and actuarial administration systems.
Data Import Formats: Supports a wide range of data import/export formats (CSV, XML, JSON, etc).
Data Quality Score: Quantitative indicator of input data quality.
Data Validation Rules: Flexible validation logic for raw and transformed data ingestion.
ETL Automation: Automated extract, transform, load for large volumes of insurance and asset data.
Master Data Management: Central source of truth for entities, product lines, counterparties, etc.
Time-Series Data Handling: Support for handling historical/versioned data for trend analysis.

Governance, Audit, and Compliance

Controls, oversight, and risk mitigation features for managing regulatory compliance and accountability.

Approval Workflow Automation: Configurable approval steps for report/model releases.
Change Management Workflow: Processes and controls for model/version changes.
End-to-End Reproducibility: Ability to reproduce prior calculations given historical data.
Exception Management: Tracks, notifies, and escalates process or data anomalies.
Full Audit Logging: Comprehensive logging of all key events and user actions.
Model Governance Controls: Track, validate, and approve capital/risk models.
Regulatory Submission Archive: Stores full history of submitted documents with time/date stamping.
SOX/ISAE 3402 Compliance: Built-in compliance support for internal controls reporting standards.
User Access Segregation: Granular allocation of permissions to users/roles.
Version Control: Track multiple versions of calculations and parameter sets.

Implementation & Maintenance

Support, installation, upgrade, and operational maintenance features.

API Documentation Quality: Comprehensive developer and integration documentation.
Automated Testing Frameworks: Pre-built automated regression/unit tests for system reliability.
Automated Upgrade Tools: Includes tools for scheduled and on-demand version updates.
Configuration Management Tools: GUI and scripting for system configuration changes.
Implementation Timeframe: Average time from contract to go-live.
On-Premises and Cloud Deployment Options: Deployable in private datacenter, public cloud, or hybrid setups.
Plug-in and Extension Support: SDKs and APIs for third-party module integration.
Real-time System Health Monitoring: Dashboards and alerts for infrastructure, calculation, and process health.
User Training and Onboarding Support: Comprehensive learning resources and guided onboarding.
Vendor Support SLAs: Pre-defined response and resolution times for support.

Optimization & Capital Allocation

Tools supporting efficient allocation and optimization of capital resources across units and products.

Capital Allocation by Line of Business: Ability to allocate capital across multiple insurance product lines.
Capital Flow Monitoring: Tracks and logs capital flows by unit/product/time.
Interactive Allocation Tool: GUI or dashboards for interactive allocation and visualization.
Limit Management: Imposes and monitors capital allocation limits configured by user.
Optimization Algorithms: Built-in support for optimization (minimizing cost, maximizing return on capital).
Optimization Run Duration: Time required for a full optimization run given data volumes.
Portfolio Diversification Recognition: System recognizes and quantifies diversification effect across portfolios.
Reinsurance Optimization: Models impact of reinsurance structures on required/regulatory capital.
Return on Risk-Adjusted Capital (RORAC) Calculation: Generates RORAC figures by line of business, unit, or entity.
What-If Allocations: Real-time adjustment of allocation scenarios and their capital impact.

Performance & Scalability

Measures and features ensuring the system processes large-scale insurance portfolios efficiently.

Batch Processing Throughput: Number of policies/calculations handled per hour.
Concurrent User Support: Number of active users the system can support simultaneously.
Disaster Recovery Time: Maximum restore time following system failure.
High Availability: Design ensures minimal downtime through redundancy.
Horizontal Scalability: Easily adds capacity by adding hardware or cloud resources.
Latency for Large Portfolios: Average time to process a large insurance portfolio.
Parallel Processing Capability: Can run multiple calculations in parallel, leveraging multi-core/cluster tech.
Peak Load Handling: System is stress-tested for extreme calculation volumes.
Real-time Alerts for Performance Bottlenecks: Automated alerts triggered by slow jobs or errors.
Scheduled Job Management: Configurable scheduling for routine tasks and calculations.

Regulatory Regime Support

Covers the capability to handle various global and local regulatory frameworks for insurance capital calculations.

Automated Regulatory Reporting: Automated generation of regulatory reporting templates and documents.
Calibration Parameter Customization: Ability to input custom regulatory parameters for stress testing.
IFRS 17 Integration: Seamless capital calculations considering IFRS 17 measurement model.
Local Regulatory Support: Configurability to comply with local jurisdiction capital adequacy rules.
Multi-jurisdictional Reporting: Ability to generate reports per regulation for insurers with cross-border operations.
RBC (Risk-Based Capital) Compliance: Supports calculations aligned with NAIC RBC and similar international standards.
Rapid Regime Updates: Speed at which the system can be updated for new regulatory requirements.
Scenario Testing for New Regimes: Support for simulating potential changes in regulatory regimes.
Solvency II Compliance: Ability to perform capital calculations under the Solvency II regime.
Transitional Regulations Support: Handles transitional arrangements during regulation phase-ins.

Reporting & Analytics

Comprehensive support for internal and external reporting, analytics, and user-customized dashboards.

Ad-hoc Reporting: User-defined dynamic reporting and drill-downs.
Data Export Support: Flexible options to export data/analytics to Excel, PDF, CSV, etc.
Historical Comparison Reports: Compares current and past capital/risk states.
KPI Dashboards: Customizable dashboard for solvency ratios, capital metrics, and risk indicators.
Narrative/Qualitative Reporting Support: Structured templates for adding management discussion and analysis.
Pre-built Regulatory Templates: Out-of-the-box templates for key regulatory filings (QRTs, NAIC blanks, forms S1/S2, etc.).
Real-time Report Refresh: Latency to update dashboards/reports after data changes.
Report Automation Scheduling: Ability to schedule recurring and periodic report generation.
User-based Report Access Control: Granular data visibility by user or group.
Visualization Tools: Graphs, heatmaps, and charts for capital requirements, allocations, and attributions.

Security & Data Protection

Safeguarding sensitive insurance, policyholder, and model data.

Automatic Session Timeout: Configurable inactivity timeouts for logged-in users.
Data Backup Frequency: Frequency at which complete data backups are performed.
Data Encryption at Rest: Encrypts all stored data (database, files).
Data Encryption in Transit: Uses secure protocols (TLS/SSL) for all data transmissions.
Data Masking & Anonymization: Protects sensitive data in non-production or extracted data sets.
GDPR/Data Privacy Controls: Features ensuring compliance with GDPR, PDP, and other privacy regimes.
Multi-factor Authentication: Supports MFA for improved user login security.
Regular Vulnerability Assessments: Conducts scheduled penetration testing and hardening reviews.
Role-Based Access Control: Enforces least-privilege principle for user accounts.
Secure Audit Trails: Tamper-evident logs for forensic analysis.

User Experience & Accessibility

Usability, localization, and accessibility features for diverse end-users.

Accessible Design: Conforms to accessibility standards for users with disabilities.
Contextual Help & Tooltips: Inline help and documentation integrated throughout the UI.
Customizable Dashboards: Users can personalize workspaces, layouts, and widgets.
Intuitive User Interface: Modern GUI with easy navigation and user-centered controls.
Mobile Compatibility: Optimized for tablet and smartphone access.
Multi-Language Support: Interfaces and outputs available in multiple languages.
Personalized Notification Settings: Users configure alerts for relevant tasks and milestones.
Single Sign-On (SSO) Integration: Seamless authentication with corporate identity systems.
User Preference Storage: Remembers recent activity and preferences between sessions.
Workflow Wizards: Step-by-step guides for key capital calculation and reporting processes.

Regulatory Capital Calculation Systems features explained

for Risk Management