How Moody’s collaborated with a major global reinsurer to create real-time portfolio views from a single source of company-wide data
Key takeaways
- A single, consistent source of data company-wide
- Real-time portfolio views and reporting
- Enhanced portfolio and accumulation management capabilities
- Data roll-ups in seconds rather than days
- Automated data conversion across various entities
- A flexible, open, customizable software platform
- Zero hardware and upgrade management
The challenge — optimizing the data environment
A top-10 global reinsurance company operating a proprietary model framework wanted to fully optimize its data environment.
Multiple pain points included the fact that cedant data was received in several formats, requiring considerable resources and time to standardize for model consumption. Also, the current range of exposure management tools across different divisions prevented a more harmonized and connected data ecosystem.
The reinsurer’s exposure data platform lacked the open framework and level of system transparency needed to align it fully with its unique data and modeling requirements.
The solution — introducing Moody’s Risk Modeler™ 2.0 and Moody’s ExposureIQ™
The solution was to create a more fluid, dynamic, and unified data environment. Automated data standardization and an integrated exposure management tool were needed to achieve that, spanning all business functions and built upon an open and transparent software platform.
The adoption of Risk Modeler 2.0 and ExposureIQ provided consistent exposure management tools across the organization, maintaining data consistency at every link in the chain through risk management and portfolio management processes. ExposureIQ provided automated data reformatting, saving time and removing the need for each entity to convert client data to other formats.
ExposureIQ provided an improved performance on spider accumulations the reinsurer needed to run on cedant portfolios across the different business units. The highly visual mapping capabilities that integrate both accumulation and Moody’s RMS™ Event Response provided clear timely insights into the overall portfolio.
The outcome — a fully connected, automated data ecosystem
The adoption of ExposureIQ and ongoing integration of Risk Modeler have helped create a fully harmonized data environment built upon a single view of risk and now allows on-demand data analysis.
A single operating system across all divisions has reduced portfolio roll-up times from days to seconds. Data aggregation on a region-by-region basis is available in real time, allowing for “always-on” risk accumulation monitoring.
Key advantages for the reinsurance company include more effective and efficient portfolio optimization, instant reporting capabilities, more precise allocation of risk capital, and better decision-making.
The software-as-a-service (SaaS)-based application delivers further savings by removing hardware maintenance requirements and supporting system updates in a fraction of the time with zero operational disruption. Furthermore, the open framework offers the ability to customize the software to best align with the reinsurer’s model ecosystem.
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