Conning has announced that UNIQA Group, a leading life and non-life insurer in Austria and the Central European markets, has signed a multi-year license for Conning’s GEMS Economic Scenario Generator.
After a competitive evaluation, UNIQA selected GEMS to enhance the company’s future risk modelling. GEMS will be used in the calculation of market consistent embedded value (MCEV valuation) as well as to provide the real-world economic scenarios and asset modelling needed to support UNIQA’s implementation of a Least Squares Monte Carlo(LSMC) approach to modelling future capital requirements under Solvency II.
Conning’s GEMS is a state-of-the-art economic scenario generator that simulates future states of the global economy and financial markets using economic models, providing full market risk and asset class coverage. Conning says its financial models are among the most technologically advanced in the industry, ensuring that simulations provide realistic representation of extreme events such as those that occurred in the 2008 financial crisis. GEMS is used by insurers for applications such as Solvency II, economic capital modelling, market consistent embedded value calculations, stochastic liability and capital valuation, asset portfolio optimisation and derivative and hedging strategies.
“We chose Conning because we wanted an advanced solution that provided high-quality scenarios with consistent models for Risk Neutral and Real-World applications,” noted René Knapp, chief actuary at UNIQA Group. “We felt GEMS would provide us with a significant competitive advantage because of the robustness of its models, ease of parameterisation, the unrivalled quality of the fits to the market, and confidence in Conning’s ability to support us through Solvency II.”
“UNIQA Group is a recognized leader for their expertise in life and non-life insurance in Europe,” said Sherry Manetta, managing director and Head of Conning’s Software Operations. “When evaluating risk management and valuation solutions, UNIQA required the flexibility to balance an advanced technical model with one that was easy to use and could operate seamlessly with other applications in its overall risk management platform. GEMS provides these capabilities and more. We are delighted to have been selected by UNIQA for their modelling needs.”
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