Strategic Advisory

Capital Modeling

Capital modeling is not one-size-fits-all. That's why Guy Carpenter provides a complete range of economic capital modeling solutions that can be tailored to your resources and preferences for customization and risk-based decision support.

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Industry-Leading Capital Modeling Solutions

Our advanced modeling tools help you meet the ever-changing expectations of your stakeholders, from regulators and rating agencies to board members and policyholders.

No two insurance companies are alike. But every company–whether it’s a less complex organization or a major multinational–can utilize capital modeling to more effectively assess key risks, benchmark risk profiles, inform risk tolerances, allocate capital, meet regulatory and rating agency requirements and strategize for the future.

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The Need for Enterprise Risk Management

A.M. Best Ratings framework escalates the need for adequate enterprise risk management (ERM). Strong ERM may qualify for a one-notch upgrade, while an inadequate finding allows an analyst to drop a company’s rating up to four levels. This is why companies need to match operational controls and ERM to growth initiatives.

Insurers of any size should utilize capital modeling to efficiently and effectively assess key risks, benchmark risk profiles, inform risk tolerance, allocate capital and meet regulatory and rating agency requirements. Through our suite of capital modeling solutions, insurers can mitigate risks and create and tap into opportunities for growth.

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Economic Capital Modeling: BenchmaRQ®

Leveraged by P&C US clients

Developing a capital model can be time and resource intensive. BenchmaRQ® provides a solution for companies who seek the benefits of utilizing economic capital modeling without incurring the costs to build one from scratch. BenchmaRQ® provides you a one-year fully stochastic economic capital model that leverages industry data along with proprietary risk models to assist you with benchmarking your risk profile relative to your peers, and setting tolerances for return and risk on your capital.

Strike a Balance Between Risk and Opportunity

The MetaRisk® suite of tools: Using MetaRisk’s advanced capital modeling capabilities, you can zero in on key risk drivers and uncover the potential opportunities to make the best use of your capital. MetaRisk® delivers deeper and more meaningful insights into your business so you can pursue your strategic objectives with confidence.

Enterprise Risk Management: MetaRisk®

Leveraged globally by a variety of clients  ​​​​​​​

Clients need the power to see, understand and interact with the drivers of risk, so they can make business-critical decisions with confidence. The MetaRisk® platform delivers comprehensive underwriting, reserve, catastrophe, credit and investment risk capabilities and enables users to meet the rigorous demands of Enterprise Risk Management and regulatory requirements.

Quantify Reserve Risk: MetaRisk® Reserve™

Leveraged globally by a variety of clients  ​​​​​​​

Quantifying reserve risk is an important aspect for overall planning and risk management for our clients. MetaRisk® Reserve™ enables companies to identify, test and incorporate inflationary effects into their reserve risk assessment. MetaRisk® Reserve™ contains a state-of-the-art generalized linear modeling, in addition to industry standard reserving models. 

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Financial Planning: GC Projector™

Currently available to US clients

Well-run companies are constantly improving their financial forecasting capabilities to demonstrate effective planning for their boards, regulators and rating agencies. Guy Carpenter’s financial planning tool is an easy-to-use and robust forecasting model that provides insights into key financial metrics and assists with business planning and rating agency discussions.

More Capital Modeling Solutions

  • Spot the Opportunities: Risk Benchmarks Report

    With our Risk Benchmarks analytics tools and market insights, Guy Carpenter helps insurers better navigate the fast changing P&C business landscape and position themselves to capitalize on profitable growth opportunities.
  • Optimize Your Portfolio

    Our platform of optimization tools including RIO and STEM can be used for business planning, treaty portfolio optimization or reinsurance optimization. Underwriting risk is analyzed by optimizing direct/assumed business, ceded reinsurance, or both simultaneously, subject to capital, CAT OEP and AEP constraints.

Powering Your Business With Insights

  • Segments

    Offering you specialized expertise that focuses market knowledge, product innovation and analytics on your unique challenges—to provide you with an enduring competitive advantage.
  • Risks

    Bringing together an unparalleled depth and breadth of capabilities and experience to turn your risks into profit and sustained growth.
  • Reinsurance Broking

    Tailoring your solutions to effectively and efficiently match the right capital with your evolving risk profile.