For insurers, measuring economic capital quickly and accurately — and across business lines — to make critical decisions is a tall order. It can take months. But it doesn't have to be that way any longer.
Willis Towers Watson’s RiskAgility Economic Capital Aggregator (EC) is a powerful software application that can give your company the ability to make decisions on a daily or weekly basis with a clear understanding of the impact of individual stresses on the economic value of your organization. It's practical, it's fast and it consistently assesses risk across diversified lines of business.
Preparing for the Future World of ERM
With RiskAgility EC, you can have a survival tool for the future as shareholders, regulators and rating agencies demand improved enterprise risk management (ERM) programs linked to sophisticated risk analysis and economic capital models. Economic capital is now considered the most realistic measure of a company's risk, ahead of other measures like regulatory capital.
RiskAgility EC enables you to:
- Demonstrate that your risk governance processes are based on sound methodologies that are fully embedded in the business.
- Extend calculations of economic capital into critical business processes such as investment strategy, business planning and performance management.
In short, it can transform risk-based decision making in your organization. And it does this by building on existing financial projection systems. It does not require you to replace your current models.
Aggregation in Risk Management
The use of economic capital is set to change dramatically over the next few years. But until now, it has been challenging for insurers to calculate it quickly and accurately enough to be useful in managing day-to-day financial risk.
- It can produce robust, up-to-date reports on available and economic capital at a group, business unit, product and risk level, or at any granularity required.
- It can provide multiple risk metrics, including value at risk (VaR) reporting.
- It has built-in functionality to support immediate updating and analysis without the need to rerun underlying actuarial models.
- It models your company's full group structure, taking into account tax, fungibility and other considerations.
End result: Now, you can get near real-time risk analytics that fully reflect the nature of your business for continuous solvency monitoring and risk management.