Stochastic Processing Functionality Released (from Beta)
The power, convenience and application of Stochastic Analysis features have taken another leap forward in AXIS 12 at the same time as the Beta tag has been removed. Originally, stochastic analysis calculations as introduced in 2004 in AXIS 11.2 as a Beta feature, were limited to analysis at a single point in time, typically the valuation date. Since that time, the Stochastic Processing Module has greatly increased in flexibility and convenience, with wider application throughout AXIS, and now with AXIS 12, comes greatly improved features to embed stochastic analysis at multiple future points in the projection period, thus opening the door to the practical accomplishment of true stochastic-on-stochastic functionality. And the restrictions of a beta feature have now been removed from all Stochastic Processing functionality!
Increased Convenience and Control of Multi-user Server Farms with GridLink
AXIS users have communicated a growing demand for fast turnaround of large AXIS applications, both traditional deterministic calculations and evolving stochastic analysis. This has resulted in increased use of dedicated server farms as departmental or corporate resources, and with this has come the demand for tighter security of production environments, coupled with the need to better manage these resources for the convenience of multiple users. GridLink has responded to this challenge with more functionality, stability and ease of use, delivered with GGY's consistently responsive client support for user IT departments.
New Reserve Method Objects Introduced
Because reserves in AXIS are so flexibly defined, there were a myriad of switches in each Reserve section in AXIS 11 that supplemented the basic Reserve Method selected. With the need to support GAAP, Statutory and Tax methods, both current required and historically used in Canada, United States and in other countries, Reserve Assumption sections in AXIS Cells were getting quite long. Since each company tends to look at a given reserve method is a consistent way across its product lines, the new Reserve Method object now allows you to create and name a small number of Reserve Methods for each accounting purpose, and use these consistently in all liability cells, thus increasing control and convenience, while reducing the size of AXIS cells considerably. Note that the Reserve Method deals with methodology issues controlled by switches, and not with any reserve assumptions which currently remain in the Cell.
Multiple Life Joint Life Policies in Universal Life
In the Universal Life module, AXIS already supports two-life joint life policies, both first to die and last to die, with the capability to specify issue ages and mortality tables explicitly for each life. AXIS applies a frazierization to the assumed mortality for pricing and for valuation purposes, and will perform similar calculations to produce joint life premiums and joint life risk charges based on two lives. New functionality opens up the option to specify as many as 10 separate lives as being insured together under a joint life first to die or last to die Universal Life policy, provided that the lives are modeled as in force lives in the seriatim data passed to the Cell from DataLink.
Risk Classes and Rules Tables
Risk Class Objects and Rules Tables were first introduced in AXIS 11.4 under a beta feature code to permit testing and further development. With the release of AXIS 12 in February 2007, the beta has been removed from these powerful new objects, allowing them to be used by anyone, without special feature code authorization. Risk Classes and Rules Tables open up powerful new approaches to defining assumptions in a coordinated and more controlled fashion among related Cells, and may assist in dramatically reducing the number of Cells needed in a given Dataset which models in force business.
With no major structural change incorporated in AXIS 12, version upgrades are expected to be as smooth and straightforward as ever. However, you should review the new features included in any release before converting to be sure you are prepared for changes to assumption screens and the way key objects are used and defined.
A prime example of this is the introduction of the new Reserve Method object in AXIS 12, which will significantly improve the management and maintenance of reserve methods used in a dataset. However it will also impact all Liability Module Cells, and require the creation of appropriately named new objects and thus may be more efficiently managed by preparing datasets in advance for the conversion of user data which AXIS 12 will automatically perform.
For assistance with, or more information about any aspect of upgrading to AXIS 12, contact GGY Client Support.