(Image credit: IIR/Gemini.)
WTW (London) has released RiskAgility Financial Modeler (FM) U.S. Library 7.4, adding deferred pension annuity capabilities for life insurers.
The new Deferred Pension Annuity application is designed primarily for pension risk transfer transactions (PRT) and valuations of existing pension blocks with deferred lives, according to a WTW statement. The application models benefit payments for participants in defined benefit pension plans under multiple retirement ages and forms of payment, producing projected cashflows and reserves.
Kim Steiner, North America Life Practice Leader, Insurance Consulting and Technology, WTW.
“For more than a decade, insurers have relied on RiskAgility FM U.S. Library to support pricing for many of the largest PRT transactions in the U.S.,” comments Kim Steiner, North America Life Practice Leader, Insurance Consulting and Technology, WTW. “Expanding those capabilities to deferred pension annuities enables clients to address an even broader range of opportunities using the same trusted platform.”
WTW says the new application supports multiple decrements across states including active employment, retirement, termination, disability and death. It also supports annuity types including single life, joint life, certain periods and lump sums.
The application can model early or late retirement commencement ages that reduce or increase payouts, according to the company. It also supports projected cashflows and reserves using independent assumptions for experience and valuation, as well as flexible assumption formats for different benefit designs.
Supporting Increasingly Diverse Pension Specifications
“Pricing in the U.S. PRT market requires solutions that can support increasingly diverse pension specifications,” adds Steiner. “By combining our deep industry experience supporting U.S. PRT pricing with new deferred annuity capabilities, RiskAgility FM continues to help insurers tackle the market’s most complex transactions.”
WTW’s Insurance Consulting and Technology business provides property/casualty, life and health insurance software and advisory services. The company says the business includes more than 1,700 colleagues in 35 markets and supports more than 1,000 insurers across six continents.