2021-08-02-奥纬咨询-Getting_The_Most_Out_Of_AXIS™,_Vol_14_13页_1mb

AXIS™ Newsletter Summary

Editorial Notes

Volume 14 examines the role of AXIS within the evolving actuarial landscape, with a special focus on modeling Registered Index-Linked Annuities (RILA).

Key Sections Overview

Actuarial Transformation & Model Ecosystem

1. Goal Alignment: Actuarial transformation aims to shift focus from manual tasks to analytics & strategic initiatives.
2. Ecosystem Evolution:
   • Increased data volumes & advanced analytics tools.
   • Centralized model governance & IT-driven data management.
3. AXIS Role: Positioned for enhanced production efficiency, risk management, and integration with external systems.

Maximizing the AXIS Model

1. Production Automation:
   • Runbooks streamline workflows and enhance transparency.
   • External scripts integrated via EnterpriseLink ensure auditable processes.
2. Centralization Benefits:
   • Uniform development practices.
   • Improved governance and reduced risk of errors.
   • Elimination of cross-team model syncs.

Spotlight – Modeling RILA

What are RILA?

• Deferred annuities balancing higher upside against moderate downside protection.
• Growing US market share (11% in 2020), despite intense competition limited to VA/FIA.

Core Features

• Downside protection – either via floor (finite losses) or buffer (variable protection).
• Upside potential subject to crediting mechanisms.

AXIS RILA Modeling

• Components:
  • Rules tables for assigning account allocations & design.
  • Investment accounts for structured buffer/floor computations.
• Hedging:
  • Both static & dynamic methods supported.
  • Flexibility options to address cap constraints.
• Reserving:
  • Standard projections meet VM-21 requirements.
  • Customizable reserve calculations via percentages or formulas.

Granular Analysis

• Comprehensive reporting for profitability & product mechanics, including:
  • Hedge asset & pricing illustration reports.
  • Block summary projections across multiple scenarios.

Tips & Tricks

Output Manager

• Efficient batch handling: Edit multiple reports within a single session.

Dataset Formula Batch

• Run single policy reports with Override Sets for auditing, valuation checks.

What’s New in Recent AXIS Releases

Disclaimer

This is a sponsored report by Oliver Wyman, an independent consulting firm with actuaries across risk management for financial institutions.