...Fitch Capital Strength Measure: The Prism Factor-Based Model (FBM) is Fitch Ratings' enhanced risk-based capital model and the primary proprietary tool the agency will use to assess the capital strength of insurance organisations in EMEA. Prism will enable Fitch to bring insurers writing different business in different regions under different accounting standards into a single framework and to develop a comparable score for use in the rating process. Rating Agency Capital: With the enhancements of Prism FBM, there is a shift in philosophy to a "rating agency capital model" from a pure "economic capital model". This subtle, yet critical, change means parameter minimums have been set in some areas, including correlations, and some assumptions contain a measure of prudence. Increased Transparency: The underlying modelling platform is Microsoft Excel. The spreadsheet is open architecture, with all formulae and parameters easily accessible by users. There are no hidden formulae or macro coding....
