overview

Numerix Oneview Leading Hedge provides a production platform for end-to-end risk management and the hedging of life and annuity products—most notably Variable Annuities and Fixed Indexed Annuities. 

Providing a stochastic modeling framework that is risk neutral and market consistent, Numerix Oneview Leading Hedge can be used for capital calculations, product pricing and ongoing valuations, trading and hedging, and regulatory and accounting compliance.  Its industry leading simulation techniques along with optimized compilations of client’s business logic lead to dramatically faster run times, while its revolutionary “scriptlet” technology enables rapid product development and customization.

“I believe Numerix [Oneview] Leading Hedge has the fastest run-time while also being the most flexible projection software available, as well as being relatively easy to learn and use.”

- Hunt Blatz, Vice President and Head of Model Development, Transamerica Capital Management

capabilities

Product Pricing

 

Quickly structure and price any liability product from the simplest Life product to the most complex Variable Annuity through Leading Hedge’s revolutionary “scriplet” technology.

Product Design

 

Future proof with flexibility to handle life and annuity products including many VAs (WB, IB, AB, DB) and FIAs (Point to Point, Call Spread, Cliquet, Binary (Digital), Asian Rainbow (Domestic/Global)).

Account Value Projections

 

Rapid projections of decremented account values across stochastic scenarios; incorporating partial withdrawals, base lapses, mortality, dynamic policyholder behavior, GMIB annuitization, rider election rates, GMDB claims and other factors.

VA Projections

 

Generate Variable Annuity policy projections stochastically using unified hybrid model framework and deterministically using external prescribed scenarios.

Supporting Financial Reporting

 

Ongoing valuations of variable and indexed annuities for balance sheet and income statement generation.

Valuations & Greeks

 

Easily configure stochastic processes for risk-neutral valuations, including higher-order Greeks (i.e., component-level delta and gamma, key-rate Rho and Vega across prescribed tenors).

Liability Trading Grids

 

Produce a liability trading grid across a variety of market shocks for rebalancing hedge assets and intra-day rebalancing, with supporting trading models.

Hedge Asset Management

 

Revalue a broad range of hedge asset positions, to support asset liability management.

Benefits & Features
  • Dramatically faster run times for improved efficiencies
    By combining the speed of our industry leading Monte Carlo simulation techniques with highly optimized compilation of the user’s business logic, clients realize groundbreaking performance, flexibility and accuracy.

  • Greater economic effectiveness of hedging programs
    Apply consistent valuation methods to both liabilities and their respective hedge assets, leaving less opportunity for breakage. Capture cross-Greeks between interest rates, equities, credit, FX and other factors through the Numerix hybrid model framework.

  • Fast time to market for new products
    Our revolutionary Numerix “scriptlet” technology helps clients gain faster time to market through rapid product development and customization. By accessing “payoff code,” users can easily introduce new products into the system without system upgrades or additional consulting costs.

  • Minimize implementation risk and costs
    Leverage existing policy administrative and reporting infrastructure through a flexible data model with innovative data binding features. Users will not have to rebuild their existing systems in order to use Leading Hedge.

  • Flexible deployment
    Desktop, client-server, and a variety of flexible grid and cloud computing deployment options are supported.

  • Accurate valuations
    Optimized actuarial models, blending industry-proven capital market models with actuarial science.

Partners
Case studies
Ohio National Leading Hedge Case Study: Economic...
Transamerica Leading Hedge Case Study: Variable...
Additional Resources
Press Release
Numerix and Transamerica Take New Approach to Insurance Risk Management
Press Release
Ohio National Selects Numerix Leading Hedge
Product Collateral
Numerix Leading Hedge Suite Brochure: Advanced Analytics for ALM and ESG
White Paper
Considering Stochastic Mortality in Pricing Variable Annuities – Applications of the...
On-Demand Webinar
Indexed Variable Annuities - Evolving Product Designs in the Annuity Market
On-Demand Webinar
Innovation in EIA Designs - Linking to Volatility Control Indices
On-Demand Webinar
Vega Maps: New Methods for Quantifying Vega Risk of VAs & FIAs
Video Blog
Insurance Trends: The Evolving Variable Annuity Landscape
Solutions
Annuity Design & Hedging Solutions

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