Fennia Life, a life insurance company based in Helsinki, Finland, has become the first insurance company in the world to run Solvency II calculations on the Windows Azure cloud platform.
With the help of the Techila middleware solution, which was developed to simplify cloud integration and management, Model IT and Fennia Life have been able to run the simulations on the Windows Azure platform with 400 computational cores. The Techila middleware made Model IT mSII integration with the Windows Azure cloud platform fast and easy, and enables an unlimited scaling of computing power at an unforeseen combination of state-of-the-art usability and cost-efficiency.
“We are excited to see that Windows Azure with Techila integration allows the simulation model to be used interactively and provides instant feedback for changes in model assumptions,” said Päivi Ojala from Fennia Life.
Solvency II is an EU-wide regulation that will come into force at the beginning of 2013. Under this regulation, the effect of every insurance contract, capital market relation, optionality and risk source has to be modelled and measured. This sets completely new kind of modelling and accuracy demands that will increase computing capacity needs in an order of magnitude of around 3,000 European insurance companies.
Model IT has started to provide the Windows Azure cloud platform as a standard option to insurance companies adopting the mSII technology.