Aon Benfield Multiple-state transition model ReMetrica offers a unique and intuitive modelling style, particularly useful for non-programming actuaries. Using the multi-state transition idea for actuarial applications is not a new concept, but making the visual state diagram, one would normally only sketch on a piece of paper, part of the actual model itself is unique and a software first. This, without any programming, then becomes the tool to make stochastic modelling more accessible for anyone with just their own business and product knowledge. By minimising the IT, software and programming knowledge often needed in modelling packages, ReMetrica allows the user to concentrate on the real business of calibration of assumptions and uncertainty and their corresponding impact on cash flows and reserves. State diagram set up in ReMetrica for a typical whole of life product. Users can add or remove states to intuitively mimic any life, health or pension product Specialist components The platform is geared to modelling any product that benefits from the tracking of lives, in particular: General insurance (non-life): motor periodic payment orders, workers’ compensation and medical benefits Pensions/annuities: pre and post retirement with stochastic longevity and reinsurance swaps Health: incorporates multiple state modelling making it easy to replicate and model existing business Life: full model office that can incorporate pandemics and other shocks such as lapse risk and correlations with economic variables Longevity risk The impact of increasing longevity can be easily incorporated by specifying improvement factors deterministically or stochastically, or generated by our longevity component which contains the industryrecognised longevity models, Lee Carter and Cairns-Blake-Dowd. Catastrophic risk A catastrophe transition component allows a shock to apply to any transition stochastically and then quantify the impact of the event on an insured portfolio. For example, a mass lapse shock or mortality shock in the case of a pandemic.

With regards to Pandemics Aon Benfield’s in-house expertise can calibrate the model specifically for an insured portfolio, considering both regional and diversification factors, to give clients the confidence that the risk being modelled is relevant to their business. The component allows the user to specify the expected frequency of occurrence, duration of the catastrophe event and attack rate in terms of percentage of population affected for geographical diversification. It can handle any number of age bands – each one holding its own parameters to be used with a range of probability distributions. It also allows functionalities to scale the catastrophe rate simulated in any interval during the catastrophe event period. ReMetrica for life, health and pensions 2 .