Rayterton Insurance Risk-Based Capital and Solvency Monitoring

Executive Summary

Rayterton RBC converts fragmented financial data into a single source of truth. The system provides real-time visibility into solvency ratios and capital health. It replaces reactive reporting with proactive management through automated data integration and predictive analytics.

End-to-end Operating Story

Unified Data Foundation and Integrity

Accurate solvency reporting requires clean data. This module connects directly with ERP and Core Insurance systems to eliminate manual input errors.

Core capabilities:

• Data Integration Hub: Establishes seamless connections with internal finance systems and external market data feeds. It synchronizes policy and claim data automatically.
• Data Quality Management: The built-in Scrubbing Engine cleanses raw data instantly. Validation Matrix rules apply strict logic to assets and liabilities to ensure integrity before calculation.
• Adjustment Console: Users can manage manual journal entries and review reconciliation logs within a controlled environment.

Precision Risk-Based Capital Engine

The calculation engine handles complex risk variables to determine the exact capital charges required by regulation.

Core capabilities:

• Credit and Market Risk: This component calculates risk weights for investments, interest rate sensitivity, and equity valuation. It specifically assesses Joint Financing portfolios and counterparty default risks.
• Insurance Risk: The module evaluates premium and reserve risks. It incorporates catastrophe modeling to assess technical insurance exposure.
• Operational Risk and Aggregation: The system computes operational risk charges based on gross revenue. It aggregates all risk factors to produce the final RBC calculation with diversification benefits.

Dynamic Asset-Liability and Liquidity Command

Financial stability depends on balancing assets against liabilities. This area detects duration mismatches and liquidity gaps.

Core capabilities:

• Valuation Framework: The system performs fair value assessments for assets and best-estimate valuations for liabilities.
• ALM Strategy: Duration Gap Analysis monitors the time sensitivity of assets versus liabilities. Currency matching logic prevents foreign exchange exposure.
• Liquidity Control: Cash Flow Projection tools forecast 12-month inflows and outflows. The Liquidity Coverage Ratio (LCR) monitor ensures sufficient high-quality liquid assets are available.

Predictive Stress Testing and Resilience

Insurers must prepare for future market volatility. This module simulates adverse scenarios to test capital resilience.

Core capabilities:

• Scenario Simulation: Users can apply Macro-Economic Shocks such as inflation spikes or interest rate changes. Specific simulations cover pandemic events and catastrophic claims.
• Capital Planning: The platform models the impact of capital injections and dividend distributions. Reverse stress testing identifies exact breaking points in the financial structure.
• Result Analyzer: Comparative views display the difference between base scenarios and stressed outcomes to support strategic planning.

Automated Regulatory Compliance Bridge

Regulatory reporting should be accurate and timely. This section automates the generation of mandatory disclosures.

Core capabilities:

• Regulatory Reporting: The system auto-generates OJK RBC forms and public disclosure reports. It produces valid XBRL output for regulator submission.
• Governance Control: A strict Sign-off Workflow governs report approvals. The Audit Trail Logs record every data modification to satisfy external auditors.
• Submission Management: Teams can track submission history and log regulator feedback directly within the platform.

Executive Control Tower and Decision Intelligence

Leadership teams need immediate insights. This dashboard consolidates complex data into clear performance indicators.

Core capabilities:

• Executive Overview: The Global Solvency Dashboard presents real-time health scores. Multi-entity support allows viewing performance by branch or subsidiary.
• Risk Intelligence: The system highlights top risk exposures and tracks Key Risk Indicators. Financial heatmaps visualize risk concentration across business units.
• Alerts and Actions: An Early Warning System triggers notifications when thresholds are breached. The Mitigation Plan Tracker ensures issues are resolved systematically.

Glossary of terms & abbreviations

• RBC (Risk-Based Capital): A regulatory framework that determines the minimum capital an insurer must hold based on the size and risk profile of its operations.
• Joint Financing: A financing arrangement where multiple parties share capital funding for a specific project. The system calculates risk weights and capital charges specifically for these shared portfolios.
• ALM (Asset-Liability Management): The practice of managing financial risks resulting from mismatches between assets and liabilities. The system uses duration gap analysis to monitor these positions.
• LCR (Liquidity Coverage Ratio): A standard metric used to determine if an institution has enough high-quality liquid assets to cover short-term obligations under stress.
• XBRL (eXtensible Business Reporting Language): The global standard for digital business reporting. The engine generates these files automatically to meet regulatory submission requirements.
• EWS (Early Warning System): A proactive monitoring tool that triggers alerts when risk indicators approach critical thresholds. This enables immediate mitigation before violations occur.
• OJK (Otoritas Jasa Keuangan): The Financial Services Authority of Indonesia. The system includes pre-configured reporting templates and logic compliance with their specific regulations.
• API (Application Programming Interface): A connection protocol that allows different software systems to communicate. This enables real-time data sync between the Core Insurance System, ERP, and the RBC engine.
• Data Scrubbing Engine: An automated feature that validates and cleanses raw data. It fixes inconsistencies in financial records before they enter the calculation workflow.
• Stress Testing: A simulation technique that tests the resilience of investment portfolios against hypothetical negative economic scenarios.