We help build risk and capital models for insurers and other risk bearers to help you deploy capital
efficiently and optimize capital structure within the constraints set by rating agencies and regulators.
We are endorsed to use multiple software platforms and have fifteen years' experience, to help maximize your
benefit by integrating the model output into well-informed decision making.
Summary
Northstreet Risk Consulting provides risk & capital modeling advice and services to insurance companies and corporations building Enterprise Risk Management (ERM) infrastructure. Based in the North West of the United States and in the UK, we can help clients in the UK & Europe, North America, and Asia.
Solvency capital models
Our business is to help clients establish an internal risk & capital model, and integrate it into business planning and strategic decision making. Rating agencies give credit for it; Solvency II regulations in Europe require it for all insurers & reinsurers in the EEA, and similar principles are rapidly gaining traction in all parts of the world. The US looks likely to move in the same direction when the timing is right, and we are ready to help clients respond when that happens.
A range of software platforms can be licensed on which to build a model, and we have negotiated licenses to use several of them in our work for clients. The platform decision should not be a major hurdle to your internal model design. The main challenge is to integrate the internal model into the business, use it in strategic decision making, and communicate the results that it influences to operational units, executive management and owners of the firm.
Small firms
Smaller firms with simple business models can be overwhelmed by the volume of regulation and compliance requirements, especially for Solvency II internal model approval. Our recent experience shows that pragmatism can win the day: with good ground work a well-run firm can navigate the bureaucracy to show in simple terms how it meets Solvency II tests & standards. Former FSA internal model approval (IMAP) lead Michael Wynne-Jones can help de-mystify internal model approval, self-assessment templates, contents of application, external models & data, model validation and documentation. We can show you how to evidence compliance as well as achieve compliance.
Extended benefits of the internal model
With an internal model in place it is easy then to leverage its output into decisions about cost of capital allocation, risk retention vs. risk transfer for corporations, captives and insurers, and cost-benefit analysis using cost of capital as the metric.
Experience
Principal Michael Wynne-Jones has an Honors degree in Electronics, PhD in Engineering, Statistics & Machine Learning, and is following the CFA Institute curriculum covering corporate finance, accounting, financial statement analysis, economics, portfolio management & investment. He is currently working in this field as a Senior Risk Specialist at the UK financial regulator, the Financial Services Authority (FSA).
He jointly led the development project for Guy Carpenter's risk and capital software MetaRisk for several years, coordinating requirements, designing the business architecture and individual model components. Working regularly with clients to provide training and understand requirements, he was able to respond to their needs in the software, and is uniquely qualified to help clients build risk & capital solutions.