Date / 5th August 2011
To / Managing Agents, Members Agents, Members.
Subject / Member Modeller Release (August 2011)
Initial Release Proposed Year 2012
Please be advised that anupdatedversion of the Member Modellingsoftware (‘Member Modeller’) is now available. This is the first release of the Proposed Year model for 2012, and will be subject to SBF, ICA and Member participation updates throughout the Capital Setting process. Scheduled updates, previously advised in Market Bulletin Y4497 on 13th June 2011, are timetabled for 26th August, 20th September and 28th October 2011.
This release also includes some software improvements, which are detailed below.
The ECA data reflects the latestsyndicate business forecast submittedand the latestsubmitted ICAs, which are still subject to ICA Steering Group review. Syndicates electing to base the ECA on ICP benchmark movement are still subject to change upon review of submitted reserves. Overall, there is still some uncertaintyin respect of
Reserve Margins, and further changes are expected, which we will make available in the next release on the 26th August. In the meantime, the ECA figures produced from this release should be regarded as indicative only.
The participation data included in this release uses information provided via SBFs in respect of aligned corporate members, and assumes that private Members will continue to write their 2011 positions in 2012. Where syndicate mergers have been fully processed, we have assumed that Members will fully transfer their ceased underwriting to the ongoing syndicate; where the merger is still not finalised, this capacity is not utilised. Members’ Agents are requested to advise MRC of any intention to operate a new MAPA in 2012, so that the MAPA can be included as early as possible.
Members will continue to be subject to a minimum capital requirement of 40% of their overall premium limit, with the exception of members writing predominantly (85%) UK and other EU motor business, who will be subject to a minimum of 25% of their premium limit.
For full details on the capital setting approach, see market bulletin Y4497 of the 13thJune 2011.
Software updates
The following points should be noted in respect of the Member Modelling software:
- The ECA calculation engine now models 50,000 simulations, instead of the 10,000 simulations used for 2011. This will reduce the risk of modelling error, but does carry a performance overhead, and users should expect ECA calculations to take longer to process. We believe that performance is still acceptable, but would welcome comment if users feel that this is not the case.
- Agents will now be able to import lists of Dummy Members (Dummy code, and name) from a designated csv file. The ability to add members individually will remain.
- Members’ Agents only will now be able to amend back-year participations for Dummy Members. This functionality had been previously available only by importing a new participation set for the Member.
- On the "View members" webpage, agents will now be able to sort on the valid status of members' active participation sets. Data releases can invalidate active sets, and, should this happen, it will now be easier to review the extent, and likely cause, of sets becoming invalid.
- On the "View members" webpage, the use of the check box to select all members has been improved, so that selections on each page persist while the webpage is active. Previously selections made on the first page, for example, were dropped when moving to another page of the member list. It will now be easier to work with groups of members without needing to add them to a selected list.
- It is now possible to generate a report for proposed conversions from the results tab of the conversion. Previously, this had been only available form the reports section of the system. Additionally, a number of small changes have been made to reports to improve formatting, and consistency of presentation.
Problems & Contacts
The User Guide and FAQ’s have been updated for 2012, but we would welcome comment on its content.
Software usage/content problems: send an e-mail to -
Alternatively, agents can contact Kevin Barnes (ext. 5683), Tim Cragg (ext. 5152)or
Neil Wells (ext. 6034) in the MRC with any ECA queries.
Neil Wells
Manager Member Capital
Market Reserving & Capital
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