SunGard APT for Solvency II
Solvency II presents a fundamental review of capital requirements and risk management standards for the European insurance sector, and is scheduled to come into effect in early 2013. Under Solvency II, insurance companies can use one of two approaches to calculate their regulatory capital requirements:
- A standard formula set by the regulator
- A Partial or Full Internal Model specific to that insurer, which is subject to regulatory approval.
SunGard's APT can support your Internal Model, giving you greater capital flexibility and competitive advantage over insurers with standard models.
- Enhanced risk adjusted returns
- An integrated enterprise risk management framework
- A consistent modelling approach across economic capital calculation and asset allocation
- Provides proof of the ‘use test’, a crucial element of the internal model approval process (IMAP)
- Economic scenario generation capabilities that are consistent with the market risk model and associated analytics and modelling features
- Scenarios that can be fed into appropriate models for valuing and assessing insurance liabilities e.g. DFA model
- Risk in the APT system is calculated from security level data rather than index proxies - a key feature for obtaining regulatory approval for your internal model
- High quality, clean derived data sets across asset classes - decreasing clients' data management workload for a faster implementation and decreased project risk
- Solvency II related documentation to help gain approval for an internal modelling approach