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Actuarial Risk & Capital Management

Use Actuarial Software to Address Common Business Goals

Going beyond risk control, risk managers are increasingly expected to enable better commercial decisions with unique analytical insights. Supported by specialized insurance software, the role of the skilled actuary has also expanded, often overlapping with risk management in pursuing the goals of ensuring the firm’s viability, promoting profitable growth and using capital optimally.

  • Enhance the management of risk, capital and products with insurance and actuarial software solutions.
  • Improve strategically important decisions with risk-based insurance business intelligence.
  • Adapt to increasing regulatory reporting and management information demands with flexible modeling capabilities.
  • Enable effective governance, controls and auditability.
  • Boost insurance risk reporting performance and deliver more faster.
  • Operate more efficiently and manage total cost of system ownership.

Actuarial Modeling


Calculation Scope and Advanced Modeling

Reliable Insurance Risk Modeling with Control, Speed and Transparency

Increasing demand from the business, regulators and other stakeholders for detailed, accurate information on the company’s risk means that actuaries must produce model results quickly, with consistency and transparency. FIS™’ Prophet actuarial modeling software solution ensures that model results are auditable and that growing needs for governance and control are met.

  • Improve operational control with the collection, management and analysis of data in a centralized, collaborative insurance software environment.
  • Ensure there is a traceable link from results back to their sources, providing greater confidence in actuarial modeling output and the decisions it informs.
  • Achieve fast model runtimes, with optimized processing, either on-premise or with the scalability of the cloud.
  • Reduce error; increase consistency; and formalize the links between results, models and inputs to provide accurate, repeatable results.
  • Protect information with multiple environments, separating development, quality assurance, production and disaster recovery.

Data Management and Business Intelligence

Timely and Accurate Insurance Risk Analytics

With regulators and management demanding that insurance risk information drives enterprise decision-making, the production, presentation and dissemination of risk data has become an integral part of the business. FIS™’ Prophet actuarial modeling software solution ensures that insurance risk data is accurate, timely and easily understood by stakeholders outside the risk and actuarial functions.

  • Use insurance software to transform actuarial modeling output into insurance business intelligence that is easily accessible and consumable in graphical format.
  • Retain strong traceability of results and user actions, from data gathering and modeling through to reporting dashboards.
  • Create efficient, end-to-end processes, and control and automate them to reduce the operational burden.
  • Integrate into a range of different environments, exchanging data and activities with other systems and staff.
  • Gain flexibility in dealing with a wide range of data models, model types, customer-specific calculations and business processes.
  • Overcome traditional silos to provide consistent, complete and coherent risk intelligence.

Deployment, Services and Support

Maximizing Value

As a risk professional, you want to deliver reliable model results and spend more time evaluating them and less time dealing with insurance systems and processes. With FIS™’ Prophet actuarial modeling software solution, you can optimize the value of your risk technology with a variety of deployment options and comprehensive services and support.

  • Choose the best deployment option for you:
    • On-premise or hosted
    • Or take advantage of the scalability and convenience of cloud-based managed services – eliminate the need for costly in-house infrastructure with insurance software as a service (SaaS), boost performance, and stay agile using virtualized model environments as you need them.
  • Optimize your model infrastructure through technical services, improving the end-to-end modeling process.
  • Alongside managed services and support, benefit from specialized actuarial modeling services to design, implement and optimize your models.
  • Access comprehensive training, both standard and bespoke, to enable you to make the most effective use of your models.

Input Management

Improve the Quality, Efficiency and Control of Actuarial Modeling

The accuracy of actuarial modeling output is dependent on the quality of the input data and the underlying assumptions. Cleansing, enriching, aggregating and formatting are part of the challenge. FIS™’ Prophet actuarial modeling software solution ensures that the right assumptions are applied and that the management of data and assumptions is controlled and efficient.

  • Analyze and interpret a wide range of experience data with insurance and actuarial modeling software to generate and validate your assumptions.
  • Simplify and more effectively control the assumptions management process.
  • Minimize the complexity of managing multiple model runs by applying consistent assumptions across different models.
  • Accelerate data preparation and the setup and execution of model runs.
  • Reduce errors and increase confidence in your model results.
  • Enhance control, governance and auditability.

Product Development

Fast, Flexible and Transparent Actuarial Modeling

Market changes and increasing competition from established and new providers mean insurers must be able to quickly model, price, test and launch new insurance products while ensuring that the associated risk is acceptable. FIS™’ Prophet insurance software and actuarial modeling solution gives actuaries a flexible, easy-to-use system for rapid insurance product development and modification.

  • Benefit from our insurance software’s intuitive, easy-to-learn and adaptable coding language designed for actuaries, with no need for software programming knowledge.
  • Proceed quickly, taking advantage of out-of-the-box prebuilt actuarial modeling tools, templates and features.
  • Support product needs across life, general insurance, health, pensions and financial services on a single platform, ensuring modeling consistency.
  • Present actuarial calculations transparently, in a form that is easily understood.
  • Be confident that you are using a tried and tested solution, relied on by an extensive user community globally.

Results Production

Reliable Insurance Risk Modeling with Control, Speed and Transparency

Increasing demand from the business, regulators and other stakeholders for detailed, accurate information on the company’s risk means that actuaries must produce model results quickly, with consistency and transparency. FIS™’ Prophet actuarial modeling software solution ensures that model results are auditable and that growing needs for governance and control are met.

  • Improve operational control with the collection, management and analysis of data in a centralized, collaborative insurance software environment.
  • Ensure there is a traceable link from results back to their sources, providing greater confidence in actuarial modeling output and the decisions it informs.
  • Achieve fast model runtimes, with optimized processing, either on-premise or with the scalability of the cloud.
  • Reduce error; increase consistency; and formalize the links between results, models and inputs to provide accurate, repeatable results.
  • Protect information with multiple environments, separating development, quality assurance, production and disaster recovery.

Risk and Capital Management


Collateral Risk

Minimize the Cost of Collateral, Maximize Return on Assets

In an environment in which high-quality collateral is a scarce commodity, it’s essential that you integrate insurance systems with sound collateralization operations and optimization processes that make the most efficient use of collateral. With the Apex collateral suite, you can manage, trade and optimize collateral across multiple trading book products on a single platform.

  • Gain access to numerical optimization algorithms that help minimize the cost of collateral and maximize return on assets.
  • Trade directly from a real-time global inventory that gives you a universal view of assets across products, asset classes and geographies.
  • Keep track of who collateral is held from and posted with and at what rate.
  • Benefit from tailored, cross-product support for collateral operations, incorporating flexible agreement management and workflows.
  • More fully understand the multidimensional aspects of collateral management risk.
Actuarial Risk and Capital Management - Collateral Risk

Credit Risk

A Complete View of Credit Risk in Real Time

Actuarial Risk and Capital Management - Credit Risk

Credit departments must analyze an overwhelming tide of data to support better business decision-making. However, many insurance systems are unable to provide a complete picture or make complex calculations. As part of our insurance software solution suite, the Adaptiv Credit Risk solution measures and manages counterparty credit exposure in real time across assets.

  • Aggregate all risk-taking activities as they happen so you can run complex calculations to measure and control counterparty credit exposure.
  • Base your decisions on a complete and accurate picture of risk.
  • Achieve regulatory and economic capital savings through the use of effective risk mitigation.
  • Optimize the use of credit appetite.
  • Reduce the operational overhead of managing your limits framework.

Financial and Regulatory Reporting

Robust Insurance Software for Faster, More Detailed Reporting

Financial reporting requirements continue to intensify for insurers. The challenge is to build on capabilities developed for regimes such as Solvency II for improved efficiency and to prepare for new requirements under IFRS IV Phase 2. FIS™’ Prophet insurance software helps you keep ahead of stakeholder demands for earlier, quicker and more detailed reporting.

  • Streamline processes to more efficiently meet the demands of regulators, investors, auditors, management and other key stakeholders.
  • Speed up the production of information from actuarial modeling needed for insurance risk reporting.
  • Apply controls and procedures to make sure results are accurate and auditable and can be reproduced.
  • Ensure processes remain flexible so you can react quickly to changing requirements.
  • Use insurance business intelligence to make sure information is more easily understood by senior management and that the firm itself maximizes the benefits of its risk data.

Insurance Risk

Effective Measurement, Control and Reporting

Insurers face increasing internal and external stakeholder pressure to improve their understanding and management of underwriting risk and to communicate this effectively. At the same time, they are looking to run underlying operations more efficiently and use insurance risk analytics to support their need for sustainable growth. FIS™’ Prophet insurance software can help.

  • Accurately measure insurance risk across life, general insurance, health and pensions.
  • Integrate actuarial calculations for insurance risk management onto a single insurance software platform, reducing complexity and increasing operational efficiency.
  • Enable the fast delivery of accurate, auditable and clearly presented insurance risk reporting information for regulators, risk managers, senior executives, analysts and investors.
  • Integrate views of insurance risk with investment and other risk classes.
  • Convert risk information into clearly presented insurance business intelligence, steering the business toward greater profitability.

Investment Risk

A Better View of Risk for Better Decision-Making

Ultra-low interest rates continue to hamper investment managers, with some now investing in riskier asset classes with the aim of improving returns. Complementing our suite of insurance software solutions, APT from FIS helps you incorporate risk more fully into your investment strategy and improve control, reporting and transparency.

  • Achieve compliance by generating the regular reports required by regulators.
  • Meet the increased requirements for reporting and transparency of sophisticated investors who seek a greater understanding of risk as part of portfolio strategy.
  • Achieve a comprehensive, enterprisewide view of risk across asset classes for improved investment decisions. Increase operational efficiency with fully automated risk reporting, available as a fully managed service.
  • Increase operational efficiency with fully automated risk reporting, available as a fully managed service.
  • Also access FIS’ Prophet insurance software solution for an integrated view of risk across assets and actuarially modeled liabilities.
Actuarial Risk and Capital Management - Investment Risk

Liquidity Risk

Go Beyond Compliance and Improve Performance

Actuarial Risk and Capital Management - Liquidity Risk

New regulatory requirements present challenges, but it’s not enough to simply be in compliance – you must also optimize your business model, factoring in newly introduced regulatory ratios. As part of our suite of insurance software solutions, the Ambit Liquidity Risk Management solution empowers you to take liquidity risk management beyond compliance and focus on performance.

  • Factor the new liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) into funding and asset allocation plans under potential risk scenarios.
  • Profit within constraints by integrating upcoming regulatory changes into balance sheet planning.
  • Ensure consistent risk data and models to simulate the impact of the strategy on future income and compliance.
  • Make regulatory ratios an integral part of the steering framework to set the right incentives and put the strategy into practice.
  • Gain a clear view of your liquidity under a variety of forward-looking scenarios and stress scenarios.
  • More accurately determine the appropriate liquidity buffer based on your contingent liquidity needs and regulatory requirements.

Market Risk

Advanced Insurance Software for Dynamic Asset-Liability Management

With ever-changing markets and more regulatory demands, insurers have a greater need to carry out stochastic asset-liability management (ALM) and understand the relationships between assets and liabilities. FIS™’ Prophet insurance software solution provides sophisticated ALM capabilities to help you meet current and emerging regulatory requirements and gain a more complete understanding of your business.

  • Create comprehensive models for insurance regulatory and other reporting requirements.
  • Optimize your investments strategy and ability to hedge.
  • Apply a thorough framework for performing stress testing and scenario analysis.
  • Support a wide range of modeling objectives, including economic capital, regulatory solvency, market-consistent embedded value, business planning, strategic analyses and stochastic pricing of options and guarantees.
  • Easily model management actions, policyholder reactions, economic valuations, interest rate scenarios and other key market variables.
  • Model assets comprehensively, across bonds, equities, derivatives, property, mortgages, mortgage-backed securities, collateralized mortgage obligations, cash, and externally modeled asset cash flows and values

Operational Risk

Accurately Assess Risk Costs and Enhance Control

Actuarial Risk and Capital Management - Operational Risk

Many lessons were learned from the global financial crisis, and avoiding future catastrophes necessitates the integration of market, credit, operational and strategic risk disciplines. Integrated with our insurance software suite, the Ambit Operational Risk solution helps you capture operational risk issues, control internal sign-off and measure the economic impact of risks.

  • More effectively assess risk costs.
  • Streamline the capture, approval and reporting of errors, incidents and omissions.
  • Gain a robust foundation for governance, risk and compliance data capture and management reporting.
  • Reduce training costs with a solution that allows users to quickly and efficiently perform a range of tasks.