Contract provides accesss to Benfield's consulting, natural peril and financial modelling expertise

Benfield has announced it has signed a five-year agreement to provide a range of risk modelling and consulting services to Lloyd’s and to syndicates within the Lloyd’s market.

Under the terms of the agreement, Lloyd’s will license Benfield’s DFA modelling tool, ReMetrica, for its own regulatory capital modelling requirements.

A special edition of ReMetrica will also be developed over time and offered on a non-compulsory basis to Lloyd’s syndicates to assist them with their own capital and portfolio modelling.

Each syndicate will also receive a copy of ReMetrica limited edition for use in building reinsurance models.

In addition to the financial risk modelling tools, the new contract also includes a broad-based consultancy agreement giving Lloyd’s access to the specialist analytical and modelling skills within Benfield’s 200-strong global ReMetrics team of actuaries, financial analysts, natural hazards modellers and risk consultants.

Mike Steel, chairman of Benfield ReMetrics, said: “It is ever more vital for underwriting entities to have a truly comprehensive understanding of the way their full range of financial risks can and do interact – hence Benfield’s decision 11 years ago to develop ReMetrica.

"This agreement with Lloyd’s further endorses both the value of ReMetrica as a capital modelling tool and Benfield’s position as the leading intermediary for risk modelling.”

Rolf Tolle, director, franchise performance at Lloyd’s, said: “We look forward to working with Benfield and its ReMetrics team. Its risk modelling tools and expertise are highly regarded, and ity will enable Lloyd’s and each of the Lloyd’s syndicates to more effectively manage their risks.”

In June 2006 Benfield announced that Ernst & Young signed an agreement to license ReMetrica to undertake a range of economic capital modelling work for its insurance and reinsurance customers around the world.

ReMetrica is also currently used by over 50 blue-chip companies in over 20 countries including many of the world’s leading insurance and reinsurance companies and consultancies.