New service to help clients manage capital and reinsurance

Reinsurance broker Aon Benfield has launched a risk and capital strategy team, which will advise clients on capital and reinsurance optimisation by analysing the links between risk, volatility, capital and value.

According to Aon Benfield, the new team will coordinate the technical and actuarial aspects of capital calculations and work with local analytics professionals to deliver advice to clients’ senior management.

As part of Aon Benfield Analytics, the newly formed team will use the broker’s ReMetrica capital modelling software as well as its catastrophe modelling, non-catastrophic risk parameterisation and rating agency expertise.

Parr Schoolman will head the team globally and in the Americas, Marc Beckers and Paul Maitland will lead the team in the UK and Europe, Middle East and Africa, and Will Gardner will lead the Asia Pacific-based team.

Aon Benfield created the risk and capital strategy team because of the challenges posed to insurance companies’ capital management by macro-economic instability, softening rates and impending introduction of Solvency II and changes to accounting standards.

“In the current environment, insurers need to rationalise the link between their risk tolerance, their risk capacity and the compensation received for taking risk,” Schoolman said in a statement. “We have had several successful projects helping clients address this need, from setting catastrophe capacity limits to cost of risk allocations and reserve risk quantification. Building upon our track record, the formalised team will allow us to replicate these capabilities globally and help clients navigate the challenges they will face during Solvency II implementation.”