RiskMetrics Group, a leading provider of risk management and corporate governance services to the global financial community, today announced it will supply SBI AXA Life Insurance Company Ltd., the first Japanese Online Life Insurance Business, with cutting-edge market and credit risk systems.
SBI AXA Life Insurance selected RiskMetrics Group's RiskManager and CreditManager applications to provide risk management and reporting services for its life insurance business in Japan.
"RiskMetrics Group offers a state-of-the-art integrated model for risk management," said Yohsuke Watanabe, Executive Officer and General Manager for Compliance and Risk Management at SBI AXA Life Insurance. "Insurance companies can only have a complete picture of their financial risk if the market and credit risk functions are integrated. That's why it's critically important for us to be able to rely on a risk management company that offers both credit and market risk solutions founded upon transparent methodologies."
Versatility and transparency were key criteria during the selection process, and SBI AXA Life Insurance will be able to capitalize on RiskMetrics Group's transparent gold standard methodology and trusted systems for purposes of reporting, i.e. disclosure to the Financial Services Agency (FSA), as well as for internal risk reporting to the Risk Management Committee and at Executive Management meetings.
"SBI AXA's choice underlines the buy-side's move to an integrated approach to both credit and market risk management, which enhances total return for insurance companies and pension funds alike," said Kiyoshi Niki, RiskMetrics Group's General Manager in Japan.
A joint venture company established by SBI Holdings Inc. and AXA Japan Holding Company, SBI AXA Life Insurance commenced business on April 7, 2008. The company acquired its life insurance business license from the FSA in April 2008 and chose RiskMetrics Group's integrated risk solutions to satisfy both the risk assessment and risk reporting needs of its innovative online life insurance business.