Moody's Analytics insurance asset and liability management (ALM) solution provides scenario-based asset and liability modeling. The modeling framework covers a comprehensive range of assets, liabilities, and risk management strategies.
Our solution helps insurers face a range of asset and liability modeling challenges from product pricing and cash flow testing to strategic asset allocation and hedging strategies. Many insurers find managing the interactions between assets and liabilities, and responding to capital market uncertainty, challenging. Effective ALM requires managing investment strategy in line with product design, pricing, and management of policyholder obligations. It is often challenging for insurers to determine a proper risk-return trade-off for their investment portfolio in view of these variables.
Due to their complexity, the valuation of policyholder guarantees typically requires a scenario-based approach, using sophisticated stochastic models of economic risks combined with a detailed ALM model of the insurance business. The model can then be used to value projected insurance liability cash flows consistently with those observed in the market.
Integrate our flexible, modular solution into your existing ALM process
Our modeling solutions are flexible and modular, enabling rapid integration with your existing ALM process. License the modeling software and content that fits with your processes and rely on your own in-house modeling expertise.
Build better investment solutions with our economic research and scenario modeling
The Moody's Analytics Insurance ALM solution enables insurers to build better investment solutions, where the measurement and management of risk depends on client-specific cash flows and liabilities. Our flexible modeling framework covers a comprehensive range of assets, liabilities, and risk management strategies.
Director, Insurance Product Management Team
Stephen has many years of experience working with scenario generators and stochastic modeling, including calibration, development, and support. Since 2010, Stephen has led the development of the B&H Economic Scenario Generator (ESG) product suite. Stephen has also spent three years leading the delivery of the ESG calibration services, technical support, and training.
The Market-Consistent Economic Scenario Generator contains stochastic asset modeling tools in a flexible framework to produce risk-neutral scenarios.
Portfolio Modeller provides a powerful stochastic modeling framework for multi-asset portfolio risk analysis and asset and liability management (ALM).
The Real World Economic Scenario Generator contains stochastic asset modeling tools within a flexible framework for a wide range of risk management activities.
The RiskIntegrity Proxy Generator is an enterprise solution that calibrates proxy functions to model metrics, such as asset and liability values.
Moody’s Analytics Scenario Service provides economic scenarios that describe plausible future paths of variables that are coherently related.