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Solutions

Solutions for Life Insurance Companies

Model assets and liabilities for the complete picture of value and risk

For every Life Insurance company, providing accurate understanding of value and visibility into unknown risks is a business-critical need, but today’s tools offer limited features for modeling assets and liabilities. Now there is an effective way to model both sides of the balance sheet for a holistic view of a company that enables full asset-liability strategy development in a whole company context.

ADVISE™ - Advanced Stochastic Modeling

DFA’s breakthrough analytics tool ADVISE™ (Advanced Decision and Value Simulation Engine) is a robust stochastic, Monte Carlo simulation tool with the ability to project the full range of possible future outcomes to give Life Insurance companies the visibility they need to properly assess and manage value and risk. Benefits for your company include:

Ability to more precisely calculate the overall risk-adjusted value.
Greater accuracy in strategic decision-making.
Improved regulatory and ratings agency compliance.
Ability to optimize investments and hedging strategies for competitive advantage.
Rapid turnaround time using a high-performance, scalable solution.
Better management of policy-holder bonus strategies.

ADVISE is a multi-user platform that facilitates sharing models and results within a team and enables the development and simulation of large-scale models with large numbers of model points, scenarios and/or time periods. The model can be easily customized for numbers of products and model points, group structure, and determination of dynamic strategies, e.g., policy-holder behavior. All this, and more.

Optimize Financial Decision-Making

ADVISE enables you to optimize financial decision-making across all interrelated aspects of your business. Your company can start with one or more focused “quick win” applications and easily add more applications to move to a company-wide ERM environment over time.

ADVISE – Enterprise: Increase shareholder value and improve compliance with ratings agencies and regulators through total company modeling.
ADVISE – Solvency II: Enable compliance with this mission-critical European regulation.
ADVISE – EEV: Enables you to take output from your deterministic liability models, convert to dynamic liability models and integrate it into a whole company stochastic model. Calculate an EEV faster and more cost-effectively than with traditional methods.
ADVISE – Asset Liability Management: Model both assets and liabilities and the feedback loops between them to design the optimum investment and hedging strategy for your company.
ADVISE – Strategic Planning: Better manage relative contributions to performance by product, evaluate the efficiency and value of product portfolios, and leverage strategic analyses to exploit competitive advantage.
ADVISE – Performance Management: Improve ROE and earnings growth by setting clear benchmarks and measuring the results.
GEMS™ – Economic Scenario Generation: Ensure consistency by using a common economic modeling framework across the enterprise.

Benefit from ADVISE Asset Accounting

ADVISE provides a comprehensive range of asset classes and full accounting functionality including IFRS, HGB and U.S. GAAP accounting, which saves you programming time and simplifies the ability to compare accounting regimes. Additionally, the robust capabilities included in ADVISE allow you to work with an optimal representative portfolio, e.g., for ALM, or with a full asset portfolio to do more effective business planning.

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