Meeting industry challengesEvolving regulatory rules and best practice place ever more demanding constraints on insurers’ valuation and reporting processes:

■ reporting to tighter deadlines;

■ having to generate many more scenarios; and

■ increasing key-man and operational risks from ever more complex processes.

Insurers are generating more scenario sets than ever before

Next generation solutionsBarrie & Hibbert’s MC ESG Solution

A Moody’s Analytics Company

Next Generation Solutions

The global insurance industry is facing a range of risk and capital management challenges, driven by regulatory and market pressures. Market-consistent liability valuation has emerged as the global standard for regulatory and accounting submissions – for example Market Consistent Embedded Value (MCEV) and Solvency II Technical Provisions.

The Barrie & Hibbert (Market Consistent) MC ESG Solution is a suite of leading-edge stochastic asset modelling tools, offered in a flexible framework that allows insurers to address the challenges of market-consistent liability valuation.

The MC ESG Solution, one of our Next Generation Solutions, includes automation and process management features to help you meet these demanding requirements. The MC ESG Solution builds on the ESG by adding the MC Automation Modules. This delivers greater functionality, reliability and automation for your market- consistent calibration and scenario generation needs.

Features

Comprehensive modelling & Calibrationcapability

A new way of working Support and deployment

Comprehensive assets and risk factor coverage including: Nominal Rates, Real rates, Inflation, Equity, Real Estate, Alternatives, Credit Spreads, Bond returns, MBS, Callable bonds, Municipal bonds, GDP and Earnings growth among others.

Automation & workflows Automated processes for common tasks like stress calibrations, analysis-of-change and validation. Our flexible Process Manager means workflows can be built to your specific needs.

Rapid deploymentEasy- to-use interface and a dedicated implementation team means you can get up and running quickly.

CalibrationsAccess to a range of calibration services as well as tools & processes to help you to calibrate the models yourself.

Validation and analytics Built-in martingale tests and volatility tests for risk neutral modelling as well as a range of descriptive statistics and correlations.

CompatibilityEasy integration with a range of ALM systems through flexible scenario outputs.

Advanced ModelsIncludes a wide range of modelling options including advanced models like LMMPlus and SVJD.

High performance processing Deploy onto multiple processors or on a grid to reduce runtimes.

Maintenance Users get access to regular and ongoing updates of the software.

Advanced credit modellingModels, credit spreads, defaults and transitions, corporate bond portfolios and individual bonds.

Programmatic controlControl from other systems and tools via the API.

Support deskDedicated support team with access to our modelling and software experts.

Multi-economy Coherent multi-economy framework and exchange rate modelling.

Documentation Comprehensive User Guides, model technical descriptions and calibration documents.

A Moody’s Analytics Company

Next Generation Solutions

The MC ESG Solution

A Moody’s Analytics Company

Key Benefits

Award winning ESG Equipped with a range of stochastic models, our ESG allows you to choose the models that are

most appropriate to your liability profile and level of sophistication.

Automation Modules Evolving regulatory rules and best practice require more scenario sets in shorter timescales than

ever before. Our MC ESG Solution includes automation and process management features to help you meet these

demanding requirements.

Calibration Services Any ESG is only as good as the model calibrations. Barrie & Hibbert provide comprehensive

calibration services that span more than 20 economies. Our calibrations are produced by our team of ESG experts and

are supplied with comprehensive documentation.

Ability to control model parameters While we offer extensive calibration services, we recognise that it’s important for you to be able to control the calibrations and assumptions

that you use. All of the parameters in the ESG can be controlled by the user and we offer a suite of calibration tools

to help you set them.

Knowledge and training services It’s important that you don’t see the ESG as a black box. We are committed to

providing comprehensive training, not only when you first get started, but through an annual allowance of top-up

training days. All of our ESG users get access to our Knowledge Base which contains a comprehensive library of

our technical documentation.

Next Generation Solutions

The MC ESG Solution

A Moody’s Analytics Company

DisclaimerCopyright 2012 Barrie & Hibbert Limited. All rights reserved. Reproduction in whole or in part is prohibited except by prior written permission of Barrie & Hibbert Limited (SC157210) registered in Scotland at 7 Exchange Crescent, Conference Square, Edinburgh EH3 8RD.The information in this document is believed to be correct but cannot be guaranteed. All opinions and estimates included in this document constitute our judgment as of the date indicated and are subject to change without notice. Any opinions expressed do not constitute any form of advice (including legal, tax and/or investment advice). This document is intended for information purposes only and is not intended as an offer or recommendation to buy or sell securities. The Barrie & Hib-bert group excludes all liability howsoever arising (other than liability which may not be limited or excluded at law) to any party for any loss resulting from any action taken as a result of the information provided in this document. The Barrie & Hibbert group, its clients and officers may have a position or engage in transactions in any of the securities mentioned. Barrie & Hibbert Inc. and Barrie & Hibbert Asia Limited (company number 1240846) are both wholly owned subsidiaries of Barrie & Hibbert Limited.

Built for your requirements of today and tomorrow

Insurers’ modelling processes are coming under increasing pressure. You need the right tools and content to work quickly to achieve the right level of accuracy. With Barrie & Hibbert’s MC ESG Solution, backed by a dedicated team committed to its ongoing development, you can be sure you have the correct solution for your evolving requirements.

Issue How the MC ESG Solution resolves the issue

Increasing scrutiny from regulators and auditors means you need access to more sophisticated models and granular asset coverage.

The MC ESG Solution includes the award-winning Barrie & Hibbert ESG which incorporates a range of models including stochastic volatility models for equities and interest rates and covers a wide range of asset classes.

Elapsed time for producing valuation and reporting numbers is being compressed and existing processes are too slow to accommodate these.

Automated processes for common high volume tasks, like producing stress calibrations, significantly reduce timescales.

Solvency II is driving the need for greater governance and management controls.

Our Solution provides robust automated processes, management controls, and auditability.

Existing complex processes mean only a few key individuals understand and carry out the work.

Automated processes with a simple-to-use interface reduces key man and operational risks. Our Solution includes training and users have access to the Barrie & Hibbert support services to ensure your team have the skills and knowledge required.

Existing models and infrastructure are expensive to maintain and update.

Our flexible modelling framework means that models can be changed or processes updated through simple configuration changes rather than lots of re-coding. You will also receive ongoing access to regular updates of our software giving you access to the latest features and technologies.

For more information on Barrie & Hibbert’s MC ESG Solution , go to: www.barrhibb.com/products_and_services/

Tackling the issues

Barrie & Hibbert’s MC ESG Solution has been designed to tackle the scenario generation challenges faced by insurers.