internal models


Our independent validation advice helps you to use your models with greater confidence and to meet regulatory requirements efficiently.

How we can help

Modelling is now a core activity for insurers, from setting regulatory capital to making strategic decisions.

But all models have limitations, and it's only by understanding them that you can use the models with confidence.

Our independent model validation advice helps your Board and other stakeholders understand and use models appropriately. 

We have provided independent model validation for over 40 insurers.  We can give you a clear assessment of how well your model stacks up against market practice.  And we can help you develop an internal validation framework and test suite that gives the greatest value for the business.

We have helped a wide range of insurers with all aspects of model validation, including:

  • Providing formal validation sign off for regulatory purposes
  • Enhancing Board understanding and engagement
  • Providing independent review and challenge of the internal validation work
  • Developing and implementing robust validation test suites
  • Helping insurers keep pace with industry developments, including developing ‘top-down’validation approaches.

How we can help

Your capital model can be a powerful tool for understanding your risk profile and making better business decisions, in addition to calculating regulatory capital.

Insurance regulation has become tougher and more sophisticated. We can help you meet regulatory requirements in a way that adds value to the business.

Data has always been the lifeblood of insurance. The recent explosion in the volume of data available to insurers provides great opportunities but will also generate more intense competition.

Reserving adequacy is crucial to succeeding in the insurance market.  But some of the biggest risks to your reserves are not reflected in the historical claims data.

Risk management is at the core of the insurance business.  We can help you strengthen the links between strategy and risk management, increasing your chances of business success.