(Detail from the Aztec Stone of the Five Eras. Photo credit: Rob Young.)
With Mexican insurers facing a solvency mandate with an April 2015 deadline, the Mexican Association of Insurance Institutions (Asociación Mexicana de Instituciones de Seguros, AMIS) has selected SunGard’s iWorks Prophet actuarial modeling solution to develop a risk model based on the European Solvency II model. The model will be used for long-term life portfolios for the Mexican market using data from one of Mexico’s insurance institutions, according to a SunGard statement. AMIS will also use iWorks Prophet to evaluate individual insurers’ capability to implement internal models.
“The regulatory changes in Mexico are prompting insurers to look at their risk management systems and processes to better run calculations, deal with data aggregation challenges, and provide better transparency and auditability,” comments Juan Mazzini, senior analyst, Celent.
Roughly analogous to U.S. trade associations such as the National Association of Mutual Insurance Companies (NAMIC) or the American Council of Life Insurers (ACLI), AMIS is responsible for promoting the industry’s development and representing member interests before government authorities. The Association represents the 80 most important insurance companies in Mexico, which account for 98% of the total premiums in the Mexican insurance market.
“With the new solvency mandate, there is an urgent need for insurance companies in Mexico to prove compliance under a very challenging time scale,” comments María de los Ángeles Yáñez, director of development and strategic projects, AMIS. The goal of AMIS is to help insurance companies to develop the necessary capabilities to become compliant by the April 2015 deadline. SunGard is supporting AMIS in this effort by providing the risk models used in Europe in order to compare the impacts within a life insurance portfolio versus those obtained by the National Insurance and Surety Commission of Mexico (CNSF) model.”