AXIS Par Products Module

The AXIS Par Products Module is used to design and model traditional participating insurance products and attached dividend options and benefits. Uses include:

  • Pricing and design
  • Valuation
  • Financial Statements
  • Statistics on number of lives and total face amounts
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Required Surplus
  • Embedded Value and appraisal
  • Asset liability management
  • Stochastic analysis
  • Margin analysis
  • Policyholder behaviour modeling
  • NAIC Financials
  • US GAAP Financials

Dividend options AXIS can model include:

  • Paid in cash
  • Applied to reduce premium
  • Accumulated on deposit
  • Buy term bonus additions
  • Buy paid-up additions and reversionary bonuses
  • Enhancements to face amount through various combinations of term/paid up additions

AXIS can assist in product design by creating policyholder illustrations based on:

  • Dividend scales generated from first principles using various dividend calculation formulas
  • Cash values calculated using various reserve formulas including US non forfeiture rules
  • Face amount enhancement levels generated to achieve selected cross-over points
  • "Vanishing Premium" options with vanish durations defined or generated to meet specific criteria

Additionally, the AXIS Par Products Module supports many reserves methods. A subset of these methods includes:

  • Principles-Based Valuation (US)
  • Policy Premium Method (PPM)
  • US GAAP (SFAS60, SFAS97, SFAS120)
  • CRVM
  • Zillmer
  • FPT for US tax reserve

Up to six reserve bases may be run simultaneously.