Capital Modeling Solutions
Why Now?
To stay competitive in a changing market, leaders need the ability to test the portfolio impact of tweaking their strategy. Capital modeling solutions are an essential part of a robust portfolio management framework to help make strategic decisions on capital, risk and return – ultimately driving profitable growth and cycle resilience.
As such, insurers are embracing capital modeling to manage their financial resources more effectively. By understanding the risks and uncertainties, insurance companies can make informed decisions about how to allocate their capital to maximize returns, while remaining within their risk appetite.
How Aon Can Help
Aon’s Capital Modeling Solutions bring actuarial insights through consulting, enabled by our award-winning software, so insurers can extract commercial value from their capital models and drive profitable growth.
Our global team of P&C actuarial consultants delivers expertise and knowledge of market practices, regulatory requirements, modeling techniques and software implementation for clients including multi-national insurers and reinsurers, US national and regional carriers, national carriers around the world, Lloyd’s syndicates, captives, mutuals and P&I clubs.
Over 150 companies, including many of the world’s largest insurers, reinsurers and consultants, use Aon’s capital modeling solutions.
How We Collaborate with Clients
- Work always starts with a detailed discovery of a client’s needs to propose a tailored solution that best fits their requirements.
- We develop the solution, establishing a regular cadence of contact with key stakeholders to ensure continuous alignment to our client’s
- Our insights and delivery are focused solely on helping clients, and we review success based on their goals. We are long term partners to our clients, regularly reviewing to ensure the solution has effectively met their goals. We refresh our solutions through frequent collaboration to maintain value, efficacy, relevance and impact.
Case studies
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Start-up Capital Modeling
A start-up Bermudian reinsurer adopted Aon's Tyche Capital Model for its economic capital modeling, enabling a fast launch. Their sole capital actuary handled model setup, supported by Aon consultants for model validation – providing board-level assurance to embed into the business decision process.
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Capital Model Build for ORSA, Planning, and Pricing
A growing regional personal lines carrier revamped its capital model using ReMetrica due to changes in their risk profile. The rebuild accommodated new structures and reinsurance, enabling capital allocation, profitability targeting, and adaptability without incurring unnecessary long-term costs.
Capital modeling helps insurers turn uncertainty into strategic advantage. Aon’s capital modeling solutions deliver the clarity, insight, and tools to help our clients make better business decisions
Why Work with Aon
As the world’s largest provider of capital modeling solutions, our actuaries use our products every day, so we understand your evolving needs and are always ready to respond.
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Capabilities in Maximising Model Impact
- Model review and validation to provide confidence in the robustness of the capital model.
- Capital allocation advice and framework embedding to deliver real commercial value via insights around capital demand from different parts of the business.
- To ensure robust modeling practices, we provide advice on model governance framework development.
- Portfolio management insights to help make strategic decisions on capital, risk and return.
- Documentation support so the model operation is properly captured and recorded.
- Management Information design and embedding for clear and engaging capital modeling insights for senior stakeholders.
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Model Development Expertise
- Full capital model design and implementation support to unlock the power of capital modeling.
- Advice on methodology and model enhancement, including structuring advice and evaluation, to ensure models evolve alongside the business.
- Model development expertise for testing the impact of a new reinsurance program or line of business.
- Parameterization using industry benchmarks or clients’ internal data to help capture risk profiles.
- To help our clients navigate resource limitations, we offer modeling support from our experts to help build, run, and maintain your capital model.
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Software Solutions
- Support for various use cases, including economic and regulatory capital modeling, reinsurance optimization, catastrophe reinsurance pricing, and more.
- From out-of-the-box/template solutions that require no detailed coding, to custom build products that allow full flexibility of approach.
- Visual modeling capabilities enabling users to create custom models and workflows using pre-built components with bespoke code snippets.
Capability Overview
Strategy and Technology Group
Aon’s Capital Modeling Solutions are used around the world for a combination of internal and regulatory purposes, in countries including the USA, the UK (and Lloyd’s), France, Switzerland, Germany, Bermuda, Japan, Australia, and South Africa.
Delivering Better Decisions
Wherever you are on your capital modeling journey, Aon's actuarial consulting and software solutions can help. We enable re/insurers to leverage the power of capital modeling to drive profitable growth and make better business decisions.
