A recurring theme at many recent actuarial conferences and club meetings has been the anticipated impact of PBA on actuarial software and modeling. Everyone agrees that the increased demands of both deterministic and stochastic calculations will require better software and more computing horsepower. But vendors differ on how substantial the changes required will be for them.
GGY has been closely following the development of PBA for years and AXIS is well positioned to cope with the demands of PBA as defined by section VM -20 of the proposed Valuation Manual. In fact AXIS users participated in the 2011 impact study using the prescribed NPR calculations which were added to AXIS for their use. We are following the currently proposed revisions to the NPR and will support the method chosen when VM-20 is updated.
The most demanding part of PBA will be the need to calculate deterministic and stochastic approaches to the reserves, with the various exclusion tests, as well as the seriatim NPR floor, and efficiently manage these multiple calculations. Only AXIS is a fully integrated complete software solution capable of performing these multiple calculations in a single system with a single run. There is no need to maintain separate systems or business models, and compare and combine results manually or by file transfer.
- AXIS has been used in a PBA environment in Canada for more than 15 years and will soon be used for IFRS too. AXIS supports Stochastic Analysis both at the valuation date and at future dates within a projection path as well as dynamic hedging within projections.
- AXIS is already fast and flexible, yet it is being continually enhanced to respond to changing needs, and to exploit the power of evolving technology.
- Our proprietary GridLink solution is highly scalable, fault tolerant, end user friendly, and it very effectively leverages your IT investments. GridLink can reside within corporate Grid environments or stand on its own.
- Best of all, AXIS delivers the optimum balance of flexibility and performance in a robust, secure, auditable production environment, enhancing the performance of your actuarial staff.
For more information on the projected impact of PBA, please read the