Guy Carpenter Updates Risk and Capital Management Decision-Making Tool

Global risk and reinsurance specialist Guy Carpenter has released MetaRisk 7.2, the latest version of the firm’s risk and capital management decision-making tool.

The update includes enhanced features in the areas of catastrophe model blending and improved financial capabilities, to deliver a fully integrated platform that allows insurance companies to better understand the drivers of risk, assess their options, and deploy their capital accordingly. The new features improve usability and increase overall functionality.

MetaRisk is being promoted as providing users with the ability to make informed, proactive decisions that expand the value of their business. The platform is integrated to deliver comprehensive underwriting, reserve, catastrophe, credit and investment risk capabilities in a single economic capital planning solution.

“Capital allocation decisions are among the most important assessments made by company management and this latest version of MetaRisk represents the most innovative, transparent and effective economic planning tool for our clients,” said Donald Mango, vice chairman of enterprise analytics for Guy Carpenter.

MetaRisk 7.2 now features a number of new catastrophe modeling and financial capabilities and enhancements, including:

  • Direct links to EQECAT catastrophe models: MetaRisk 7.2 now supports direct imports from catastrophe risk modeling group EQECAT’s risk quantification and engineering (RQE) model databases.
  • Bulk import for event sets: Added support for loading event loss data from several files in one operation. It can import catastrophe loss data from multiple regions, perils, and/or business units at once while preserving appropriate correlation among losses.
  • Catastrophe model blending: Intuitive components that will help the user with a variety of blending options; incorporating both stochastic and scenario-based modeling components.
  • Reserve scenarios and reserve loss cause: The new version features a Bornhuetter-Ferguson (B-F) method for reserve scenarios. In addition, a selected accident years property has been added to the reserve loss cause.
  • Best’s Capital Adequacy Ratio (BCAR): The calculations of premium and reserve risk charges have been enhanced and are now at the line of business level and include the benefit of diversification. A business risk charge is also included now.
  • Asset reinvestment strategies: Two options have been added for reinvesting assets at the end of each projection year, capturing more realistic scenarios for the needs of companies.


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