overview

Modeling the liabilities in variable annuity and indexed annuity products continues to be an increasingly challenging task for insurers as regulation and product complexity add new facets to the process. 

Numerix understands that there is no one size fits all approach. There is a lot of subjectivity and interpretation that goes into creating these models, and each company has its own bespoke set of features for the products they sell, so Numerix Variable Annuity (VA) and Indexed Annuity modeling services are tailored to our client’s unique products and liabilities. 

Our full-service approach includes designing the right set of cashflow logic to model variable annuities, index annuities, and other investment linked insurance products. And because market risk can significantly impact the liability exposure within annuities, our approach includes selection of appropriate market model combinations with consistent calibrations and Economic Scenarios to appropriately capture the various aspects of market risk (economic capital, pricing, designing a new rider, producing trading grids, etc.). 

The Numerix VA and Indexed Annuities team consists of expert actuaries and financial engineers, bringing with them years of experience in the insurance industry and a wealth of advanced modeling techniques to tackle your unique product mix.

capabilities

Rapidly Structure and Price Any Derivative

 

Rapidly Structure and Price Any Derivative Gain time-to-market advantage with 250+ pre-defined deal templates, including  ‘out-of-the-box’ deal types and trade blotters that can be easily modified.

Pre-trade Analysis

 

Pre-trade Analysis Enables pre-trade price discovery and the ability to stress-test and monitor trading strategies in Excel.

Customizable Front-end for Trading

 

Traders can easily design and set-up a customized front-end for trading, with tailored workbooks/blotters and the ability to view a portfolio of trades.

Scenario Analysis

 

Supports pre-and post-trade scenario analysis, pricing grids and convergence using Excel to test trading strategies and shock portfolios.

Leverage Comprehensive Model Library

 

Access the most comprehensive cross-asset, industry–standard library of models and methods, spanning all asset classes.

Upload Trades Directly into Bloomberg

 

Upload even the most bespoke instruments from all asset classes directly into BLOOMBERG PROFESSIONAL® service—once the instrument has been structured in Numerix Bloomberg Edition.

Extensive Risk Management/Reports

 

Provides an extensive range of risk management and reporting capabilities, including Greeks, VaR, P&L, model validation and customized risk reports.

Fully Integrated, Live Bloomberg Data Feeds

 

Real-time analysis and valuations powered with pre-integrated live Bloomberg data and delivered on the desktop in Excel.

Benefits & Features
  • Experienced Team Ready To Work For You From Day One
    With years of experience inside some of the world’s largest insurers, our annuity modeling experts are fluent in the challenges you face and ready to help tackle your unique annuity modeling projects from day one—no need to spend time bringing a green or more general consultant up to speed on complex VA and indexed annuity design, market models or methodology.
  • No Black Box – Gain Confidence through Transparency and Accuracy
    You will have complete transparency into each annuity model and because our expert team leverages our Numerix Model Library, you can have confidence that the advanced models employed have been rigorously tested and validated by our model validation team to ensure accuracy.
  • Unique Approach Means Models are Tailored to YOUR Product Mix
    Your annuity product mix and their bespoke features are unique, so our approach to modeling them is just as unique. Capturing the liabilities and market risk exposures of complex annuities in these models requires a lot of subjectivity and interpretation, and our skilled team’s proprietary modeling knowledge ensures the use of appropriate model combinations, consistent calibrations, robust economic scenarios and the right model complexity for your project.
     
Case studies
Annuity Design & Hedging
Asset Management Solutions
Banking Solutions
Additional Resources
Blog
Insurance Trend Talk: Variable Annuity Product Modelling and Hedging
In The News
Markets specialists make push into VA modelling
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
Rethinking VA & EIA Product Designs To Better Manage Investment Risks

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