ICMR.Quant has been developed as an outside-in syndicate capital model which requires only high level initial assumptions in order to come up with sensible exeedance probability output. This enables the very rapid capital assessment of the impacts of changes to help with business planning.
ICMR.Quant is a high level model which is parameterised from market wide assumptions and is kept up to date through review in conjunction with Lloyd’s annual SFCR report. The output is not intended to replace any syndicate’s own capital model, which by its nature, will be much more complicated and take much longer to run.
There is no “right” answer in capital modelling, only sensible answers to specific questions. This is what ICMR.Quant was built for: to answer specific questions about the capital impacts as business plans evolve. This could be as simple a fine tuning loss ratio assumptions or involve estimating the capital impact of an entire back book LPT.
In either case, we can produce simulations quickly as well as sensitivity analyses, which can then swiftly inform strategic decision-making.