Capital Modelling and Validation Market Insights Report

This document is a market insights report focused on capital modelling and validation within the insurance industry for the year 2025. It outlines the latest trends, challenges, and best practices in the field, particularly in light of economic uncertainties and regulatory expectations. The report discusses the importance of efficiency, governance, and model change planning, emphasizing areas where firms are concentrating their efforts and identifying opportunities for improvement. It details key findings related to resource allocation, with a significant portion of firms utilizing a blend of internal and external resources for validation. The report also highlights the main challenges faced by firms, including resource constraints and the intensive nature of reporting and analysis. Additionally, it presents insights into the involvement of boards in governance and oversight, as well as firms' desires for clearer guidance on emerging risks such as climate and geopolitical factors. Overall, the document serves as a comprehensive resource for understanding the current landscape of capital modelling and validation practices.