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Insurance consulting
Capital modeling and validation
Capital modeling is a powerful tool for understanding risk profiles and making better business decisions, in addition to calculating regulatory capital.
Capital models govern how rating agencies and regulators assess financial strength. But they are also a valuable tool in deploying your capital in a way that supports your strategy within well-defined risk appetites.
Our capital modeling and independent validation helps clients to use their models with greater confidence and to meet regulatory requirements efficiently. We help clients cut through model complexity and put their board in a strong position to understand, challenge and use the model.
Optimal use of capital is crucial to sustainable underwriting success
We can help clients to:
- Gain assurance on the reliability of their capital model via independent validation
- Bring together the capital model, reserving, and underwriting views of the business to enable joined-up strategic planning
- Challenge their measurement of key risk areas via deep dive reviews
- Better align their capital modeling with risk appetites
- Incorporate emerging risks more effectively in their capital assessment
- Build new capital models (or add functionality) and review software platforms and processes
- Perform periodic under-the-hood assessments of their capital model’s effectiveness
In recent years, we have supported over 80 insurers with assessing their economic capital requirements, including through independent model validation.
Our comprehensive capital modeling benchmarking studies offer clients the opportunity to measure themselves against the market and identify areas for improvement. And our Heads of Capital and CRO roundtable communities give clients a live sounding board to gain insight from both LCP experts and market peers.
Our experts
Featured insights
Market Insights Report: Capital Modeling and Validation
Explore how insurers are navigating today’s capital modeling and validation challenges, and why embracing automation is key to unlocking efficiency and enabling deeper analysis.
Global reserving and transformation review
In this report, we share our latest insights into current challenges and what the future might hold for insurance reserving across the market.
How is your capital model validation responding to insurance industry megatrends?
In this blog, Tom Durkin looks at how capital modeling is responding to insurance industry megatrends.
Insurance Uncut - A podcast all about insurance
Join show hosts Charl Cronje, Jessica Snowball, and guests as they discuss key issues impacting the general insurance market.
Discover our client stories
A fresh pair of eyes: Performing an independent reserve review
How we helped our motor insurance client navigate one of the world’s most competitive markets.
What’s the secret to managing risk effectively?
How we have helped risk managers anticipate and address the most important risks facing the business.
Deep dive support - people risk
How we gave our client, a leading global run-off provider, insight into how effectively the firm was managing people risk.
Outsourced internal audit
How we were able to provide a small personal lines insurer with a tailored service that met their audit requirements.
Get in touch
If you would like to know more about our Insurance Consulting services and how we can help you.
