Conning’s GEMS Economic Scenario Generator selected by the NAIC to provide scenario files for the US life insurance industry
Conning, a provider of risk and capital management software and professional services to the financial industry, has been chosen by the National Association of Insurance Commissioners (NAIC) to provide its GEMS Economic Scenario Generator scenario files for use in calculations of life and annuity statutory reserves and capital under the NAIC RBC requirements.
Economic scenario generators allow users to simulate future states of the global economy and financial markets, and this information can give insurers more confidence as they plan for their future reserves and capital needs. Conning’s tool uses advanced modelling and estimation technology to produce empirically validated, realistic economic behaviour.
“We are pleased to partner with the NAIC on this initiative,” says Woody Bradford, Conning’s CEO and chair of the Board. “Our 10 years of experience in providing this software to our insurance and pension clients globally has guided the development of our robust capabilities. We are also offering the expertise of our outstanding software services team to help the NAIC and insurers get the most out of these powerful datasets.”
Conning will provide the NAIC with updated real-world scenarios modelling interest rates, equities and other economic factors, and provide full documentation and training materials for regulators and insurers. The firm will also work with the NAIC to review proposed changes and implement those adopted by regulators.