AXIS Par Products Module

The AXIS Par Products module supports creating and managing the base actuarial models of participating life insurance, including a wide variety of dividend options and benefits. Dividends can be specified using predefined tables or calculated on the fly.

In addition to modeling basic death and surrender benefits, the AXIS Participating Products module supports:

  • Multiple premium payment modes
  • Return of premium options on various contingencies
  • Multiple non-forfeiture options including CSVs on the fly, ETI and RPUs
  • Policyholder behavior modeling
  • Flexible support for miscellaneous benefits and options with independent decrements
  • Integrated proportional reinsurance under multiple treaties of different forms
  • Joint life and multiple life variations
  • Realistic policyholder and corporate tax features, including DAC tax
  • Dynamic Valuation (adjustment of valuation assumptions over time in financial projections)

Dividend options the AXIS system 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

Premiums can be defined by predefined tables, supporting tiered or banded rates, calculated from a combination of base tables with up to ten adjustment factors, or from first principles using basic actuarial assumptions. Calculated tables can be iteratively adjusted by powerful solve routines to meet profit targets or other financial constraints.

The AXIS system can assist in Participating 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 including comprehensive support for the calculation of the current and projected policy liabilities under IFRS 17 and US GAAP LDTI. In addition multiple other methods are supported, both old and new, US and International, including:

  • Gross premium methods including Policy Premium Method (PPM)
  • US GAAP methods (SFAS60, SFAS97, SFAS120)
  • US Principles-Based Valuation methods including VM20
  • CRVM
  • Zillmer
  • FPT for US tax reserve

Reserves can be calculated on the fly from first principles and up to 6 reserve bases can be run simultaneously. Required capital adjustments can be based on RBC, LICAT or Solvency II, and on a company's internal capital standards, with up to three of these calculated simultaneously.

The AXIS Participating Products module is frequently used for:

  • Pricing, design and profitability analysis
  • Valuation
  • Financial Statement projections
  • Statistics on projected number of lives and total face amounts
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Required Surplus
  • Embedded Value and appraisal values
  • Asset liability management
  • Stochastic analysis
  • Margin analysis
  • Policyholder behavior modeling
  • NAIC Financials
  • US GAAP Financials