S2Metrica, a financial analysis tool, will be launched at the Monte Carlo Rendez-Vous

Aon Benfield is set to launch a financial analysis product for the (re)insurance industry, specifically made for Solvency II.

S2Metrica is said to be based on the architecture of Aon Benfield’s existing financial analysis product, ReMetrica, but converts an insurer’s Quantitative Impact Study (QIS4) spreadsheet – the latest Solvency II field-testing exercise conducted by the European Commission – into a Solvency II-compliant internal model.

The product has been developed by Aon Benfield Analytics, the research and analytics division of the global broker and risk advisory company.

Aon Benfield said S2Metrica allows companies to achieve Solvency II output within one day, rather than hundreds of development hours that the process might otherwise take, allowing a (re)insurer to focus on model parameterisation, and sensitivity testing of the model output.

Bryon Ehrhart, CEO of Aon Benfield Analytics, said: “We recognise the importance of the Solvency II regime and the impact it will have on European Union insurers. Developing an appropriate internal model is a time-consuming and expensive process.

“The tool will help insurers to compute Solvency II capital requirements, optimise their capital sources related to the Solvency II standards, and position them well for a period of continued evolution of capital models, as the lessons of the credit and liquidity crisis are moulded into new capital and leverage rules.”

Solvency II is a risk-based supervisory framework for European Union (EU) reinsurers, which is scheduled to be introduced across the EU in 2012.