AXIS Annuity Module

The AXIS Annuity module supports creating and managing the base actuarial models of both accumulation and payout phase annuity products of various types. The module supports traditional fixed premium, guaranteed value annuities as well as flexible premium, fund based accumulation annuity products, including a wide variety of accumulation fund investment options. Underlying funds can be backed by the general account assets or segregated/separate funds for Variable Annuity with a wide variety of guaranteed minimum (GMXB) values. Fixed Indexed Annuity designs are also supported.

The AXIS Annuity module contains a comprehensive collection of features for modeling annuity policies:

  • Multiple policyholder investment accounts choices
  • Multiple reinsurance treaties
  • Policyholder behavior modeling
  • Dynamic Valuation (adjustment of valuation assumptions over time in financial projections)
  • Joint Life policies for Payout phase

Variable annuity features include:

  • Guaranteed Minimum Death Benefits (GMDB)
  • Guaranteed Minimum Accumulation Benefits (GMAB)
  • Guaranteed Minimum Income Benefits (GMIB)
  • Guaranteed Minimum Withdrawal Benefits (GMWB)
  • Earnings Enhancement Benefits (EEB)
  • Canadian Segregated Fund product guarantees

Additionally, the AXIS Annuity module supports many reserves methods, including:

  • Principles-Based Valuation (US)
  • Policy Premium Method (PPM)
  • Fund value
  • Fund - surrender charge
  • Cash value
  • Fund - DAC
  • Simple discount method
  • Zillmer
  • CARVM (AG33 and AG34)
  • Fund - DAC (straight-line, adjust for surrender charge)
  • Constant yield (FAS91) (payout phase only)

Uses of the AXIS Annuity module include the following, for both fixed and variable annuity products:

  • Pricing and design
  • Valuation
  • Financial Statements
  • Statistics on number of lives and total face amounts
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Embedded Value and appraisal
  • Asset liability management
  • Required Surplus
  • Aggregate stochastic reserve and capital requirement based on CTE methodology
  • C3 Phase 2 capital requirements for US Variable Annuity products
  • Actuarial Guideline 43 reserve requirements for US Variable Annuity products
  • Stochastic analysis
  • Margin analysis
  • NAIC Financials
  • US GAAP Financials
  • Fixed annuities can be modeled as:
    • Accumulation phase
    • Payout phase
    • A combination of both phases