The foundation of forward-looking financial intelligence for life insurers 

Insurance is a dynamic industry demanding the continuous assessment of new and changing risks, as well as the application of new regulation and financial reporting standards. Requirements such as IFRS 17, LDTI, and climate disclosures generate exponential growth in modeling complexity and volume. Increased efficiency and reliability in actuarial modeling is essential to meet reporting deadlines and governance standards.

We help insurers confidently manage their business challenges with our understanding of risk, and our unique combination of economic content, stochastic and actuarial modeling tools, expert advice and assistance. Free more time to focus on analysis, interpretation and assessment with our comprehensive, fully maintained AXIS system.

Controlled enterprise environment
Intelligent Data

No more effort to hammer input data into a prescribed format. Intelligently scan and map data inputs in any logical format, remembering this mapping over time.


Controlled enterprise environment
Low-Code Models

No need for large teams of programmers to create and maintain code. We provide the code you need, but leave the system open where you want flexibility. User-defined code is carried forward to future versions.

Controlled enterprise environment
Multiple-Use Models

No need to build multiple models. Configure a model once and reuse it for multiple applications including pricing, valuation, ALM, forecasting, and capital.

 

Controlled enterprise environment
Enterprise Controls

No hidden costs. Enterprise controls such as automation, governance, user, and version control come as standard. Transparent documentation provided and maintained, for users, controllers and auditors. 

 

Fully Maintained Solution
Fully-maintained solution

Capability that is quickly implemented and enables fast responses. Developed by experts and tailored to meet users’ needs, while keeping costs down.

Single integrated platform
Single integrated platform

A comprehensive modeling system for the main actuarial tasks, that can be applied to all products.

Expert support
Local expert support

On-demand actuarial and technical support across the globe. Training and documentation provided.

Flexible
Technology Integration

Full integration for controlled access, workflow management, automation and fast job execution.

Supporting critical management functions

Actuarial
Actuarial

Insight to drive reporting and decision-making across the business. For pricing, reserving, asset and liability management (ALM), financial projections of earnings and capital, capital calculations, hedging, and financial and regulatory reporting.

Investment
Investment

Modeling of invested assets to help create an integrated investment value chain. Creation of optimal portfolios reflecting an insurer's liabilities, capital, regulatory regime, and objectives.

Finance
Finance

The essential components of regulatory and financial reporting, earnings analysis, projections, and financial and capital planning. Supports advanced accounting frameworks such as IFRS 17 and LDTI.

Risk
Risk

Help to prepare regulatory assessments or the Own Risk and Solvency Assessment (ORSA). The tools to assess how risk exposure evolves over time under different stress tests, and whether risk appetite limits have been breached.

Practical uses of our AXIS Actuarial System

We are a leading supplier of actuarial modeling and analytics, the number one choice in the United States and Canada for actuarial modeling. With more than 30 years’ experience in the life insurance market, and a service model tested and valued by a broad, global community of customers. The AXIS actuarial system is used by insurers, reinsurers, and consultants for actuarial analysis of life insurance and annuity business for:
  • The AXIS system supports the initial design and development of new life insurance and annuity products or the redesign of existing products by:

    • Specifying detailed issue age and risk class specific product features by generating or importing product benefits values, proposed premium rates and other values

    • Exploring distribution compensation options including commission and bonus structures

    • Defining applicable reserve methods and assumptions for multiple valuation purposes

    • Defining regulatory or internal required capital targets

    • Defining expected taxation rates and assumptions

    • Simulating sales illustrations using projected premiums and benefits

    • Projecting resulting earnings on multiple bases

    • Calculating multiple profitability and return on capital metrics

    • Solving for target values of any of the above by iterative adjustments

  • Based on full seriatim in force business data files for a single valuation date, the AXIS system can transform and allocate policy data to AXIS model definition and control objects created by the user, and calculate up to eight independent reserve calculations in a single run, including:


    • Local statutory reserve calculations

    • Solvency II best estimate liability calculations

    • Tax reserves specified by tax authority

    • Public Reporting local or international standards (e,g, US GAAP and IFRS)

    • Economic balance sheets

    • Embedded values reflecting anticipated release of future profits

    • The value of options and guarantees (TVOG) using stochastic methods

    • Capital requirements


    The AXIS system can also accept multiple in force business files and multiple assumption bases, trace the movement of business and reserves through the current reporting period and generate detailed granular data files needed to support advanced accounting frameworks such as IFRS 17 and US GAAP LDTI.

     

  • The AXIS solution can import data files of investments in force at a starting date and then generate the following Financial Projection details on a monthly, quarterly or annual basis for up to 100 years:

    • Detailed cashflows such as bond coupons, mortgage and rental payments, dividends, capital repayments, administration fees and expenses

    • Asset movements arising from maturities, defaults, sales, prepayments, and calls

    • Earnings and income statement details such as earned income, amortization of realized and unrealized gains and losses (including IMR and AVR), amortization of premium and discount, and gain/loss on defaults

    • Balance sheet values and in-force statistics, including par values, book values, market values, accrued income, C1 required surplus, and so on

    • Multiple asset accounting bases available


    The AXIS system links to the Moody's Analytics structured cashflow engine for modeling structured finance assets such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), or collateralized mortgage/debt/loan obligations (CMO/CDO/CLO).

  • Supports financial reporting requirements for all purposes and regulatory risk-based capital calculations (Solvency II, C-ROSS, NAIC, Hong Kong RBC). Offering a complete and seamless integration of modeling functionality that can be applied to a single policy, a product or product group, a line of business, or entity level.


    The AXIS system models in-force portfolios and new business sales plans, required for the calculations of various global capital frameworks and their projection over time.


    Where stochastic calculations are needed, the AXIS system can handle them at time 0, and nested into projections at multiple levels.

  • Based on the starting valuation of a detailed seriatim portfolio of in force business, and actual experience assumptions for investments, mortality, lapse and expense, the AXIS system can be used for:

    • Analysis of the impact of margins with reserves, by assumption

    • Movement analysis reports (policy count, sums insured. reserves, etc.) on a planned or actual basis

    • Source of earnings analysis of the projected and actual earnings by the major sources of profit (also called gain and loss analysis) for a product line or line of business, including the analysis reserve change and earnings by individual assumption

    • Experience analysis of actual experience vs. expected experience or actual to exposure rates on a chosen assumption, such as mortality or lapse, for purposes of assumption refinement

  • Robust actuarial modeling drives key business functions of profitability analysis and business and capital planning. Asset, liability and capital calculations for current reporting are the foundation for projected financials, on multiple bases for up to 100 years. Assets and liabilities dynamically interact based on the economic scenario path and chosen reinvestment strategies.

    Informed profitability and earnings analysis requires flexibility by product and company practice, and calculation of the following metrics:

    • Detailed cashflows such as bond coupons, mortgage and rental payments, dividends, capital repayments, administration fees and expenses

    • Economic basis (cash flow)

    • Earnings (stat, gaap, internal)

    • ROE/ROI (Impact on free surplus)

    • Embedded value (EEV)

    • VAR/CTE

    • Company specific formulas


    Profitability analysis and business planning also require sensitivity analysis and stress testing capabilities (What If? analysis) which demand agility, performance, quality and dynamic asset liability interaction.

  • Fundamental to the Own Risk and Solvency Assessment (ORSA), or regional equivalent. Applied at the company level or to pricing and planning decisions at product or product line levels. The ability to test deterministic scenarios of single or multiple interacting stress events or trends in economic and experience assumptions.

    The AXIS actuarial models allow definition and application of a wide variety of stress scenarios. To a book of business, a portfolio of investments or consistently across the insurance operations in total and reveal the impact on all profit metrics, earnings and capital ratios. Reverse stress testing can be used to estimate the required deterioration in a given assumption to hit a defined impact on any of these measures through an automatic iterative process. Stresses can be combined with management actions including reinsurance, repricing, investment strategies and hedging or sales plan adjustments to provide management with a realistic and comprehensive narrative.

Cloud-based Solutions

In recent times, many insurers have welcomed working in the cloud. We offer several cloud-based options to supplement or replace traditional fixed infrastructure.


> Deploying and operating software designed by Moody’s Analytics for the cloud

> Exploiting scalable storage and calculation resources from the cloud

> Securing and maintaining an accessible model management environment

> Guaranteeing backups and replicas for disaster recovery  



Working with Moody’s Analytics

A global team of more than 200 experienced people are dedicated to the development, implementation, and support of our actuarial solution. Addressing both industry needs, and specific user requests; they deliver more than 20 releases per year for rapid response. Users control when and how frequently to update.

A single version development path means that the AXIS modeling solution is continuously reviewed by 6,000 users at more than 200 companies, giving you peace of mind that our calculations are thoroughly tested and validated.

Our team of experts is here to help. A global support desk of local actuaries is available at no extra cost. Our initial training is comprehensive and free, with built-in, up-to-date documentation. Further technical guidance and online user training is available on demand.

Expert support
Schedule a call with one of our experts
Our consultant network
Partners

We have built a well-established network of consultants with actuarial and insurance market expertise. They specialize in building actuarial solutions and have extensive AXIS software knowledge to help our clients build, maintain and optimize models in the AXIS system.


Our network can offer end-to end services to support the actuarial modeling needs of our clients. This includes model advisory, implementation, model conversions and review, new feature management and support, and training on navigating the system. Many consultants use the AXIS system to offer appointed actuary services. If you are a consultant and would like to speak to us about partnership, please get in touch using the contact form.

Other Integrated Modular Solutions to address your modeling needs

Scenario Generator
Scenario Generator

A suite of cutting-edge stochastic models, software modules and services that enable insurers and other financial institutions to manage various types of risk.

 

Liferisks
LifeRisks®

Cloud-based software that delivers the models and data to perform portfolio-specific analytics to manage extreme mortality and longevity risk.

 

 

IFRS 17 image
RiskIntegrity™ for IFRS 17

Integrates with your existing infrastructure to connect data, models, systems, and processes between actuarial and accounting functions.


LDTI image
RiskIntegrity™ for LDTI

Seamless integration of software components to fulfil your individual requirements and save on upfront technology and modeling investments.

 


Contact Request Form

Learn more and discuss how Moody's Analytics can help with your actuarial modeling.