RiskAgility Financial Modeller
Powerful financial modelling for life insurers
RiskAgility Financial Modeller
and Solutions for Life
RiskAgility Financial Modeller (RiskAgility FM)
is part of our Solutions for Life portfolio of
integrated software, technology and consulting
services – a holistic solution to managing the
end-to-end risk modelling process.
For more information on Solutions for Life,
turn to page 9 of this brochure or visit:
solutionsforlife.willistowerswatson.com
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RiskAgility FM
RiskAgility FM is a flexible software solution that enables life insurers to run
financial models that accurately reflect their company’s products in ways that are
easily adapted to their business processes.
RiskAgility FM is built with the latest software technology
for enhanced performance and ease of use. The open RiskAgility FM: C-ALM
modelling environment supports accurate calculations The Central Asset/Liability Management (C-ALM)
today and in the future, as product designs, company suite provides a well-structured asset/liability framework
practices and regulatory requirements evolve. In RiskAgility for implementing dynamic stochastic projections for
FM, modelling functions have been designed so that you profit-sharing business, including monitoring and
can easily adapt the system to your way of doing things, managing both book and market values of assets.
rather than forcing your company to conform to rigid Versions are available for French, German and
software requirements. Italian markets, along with a generic version for
other territories within and beyond Europe. These
MoSes models can be imported into RiskAgility FM, and applications provide fully featured modelling templates
we offer a number of regional applications and templates that enable you to quantify and measure value,
for RiskAgility FM to give you a quick start in modelling economic capital, risk and earnings, and to meet
product types common in various markets (see box). These new regulatory demands, such as Solvency II and IFRS.
applications are fully built out with extensive functionality.
Use them as is, or tailor them to reflect your company’s
distinctive product designs and business practices.
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Why RiskAgility FM? You can use RiskAgility FM for a
Enables your company to deploy sophisticated
variety of purposes, including:
analytical calculations based on realistic
Product development
economic principles, thereby improving risk
Liability modelling
and capital management
Asset/liability management
Uses open, transparent applications to help
you confidently understand exactly how the
Reserving
calculations model your business
Market consistent/traditional embedded value
Flexible software is easily adapted to your products
Pricing of options and guarantees
and business processes to increase productivity
Economic capital calculation
Employs the latest technology for optimal
Reinsurance optimisation
performance and ease of use
Business planning/forecasting
Includes powerful input management tools to link
variables to any external sources, including Excel
spreadsheets, text files or databases
Offers the ability to organise variables into
user-defined groups that allow assumptions and
projections to be managed easily
Enables easy set up and management of multiple
projections by mixing and matching different groups
of inputs, run parameters and output parameters
Provides flexible organisation and orchestration
of projections, allowing for dependencies
between the projections
Supports powerful distributed processing
in-house with Microsoft Windows HPC, in the
cloud with Microsoft Windows Azure or with
Willis Towers Watson vGrid – our Software as a
Service scalable virtual grid solution designed
specifically for use with RiskAgility FM
Embodies the thought leadership and expertise
of Willis Towers Watson
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Separation of modelling functions makes the system
easy to use, understand and learn
In RiskAgility FM, we have separated the modelling functions into logical groups.
Modellers create reusable objects within these functions that are available
throughout the system. This makes it easy to create a modelling process that
works well across your business environment.
For example, a modeller can use sensitivity assumptions Modelling functions are organised into groups to easily
defined in the Input Manager (Figure 1) to create a series of adapt the system to your company’s business practices.
waterfall projections in the Run Manager (Figure 2) with a
few clicks of the mouse.
Code Manager Input Manager
This separation and grouping of tasks helps you adapt the
+
system to your company’s business practices, which makes
everyone’s job easier, reduces the learning curve, and
improves model governance and control.
Run Manager Output Manager
Figure 1. Input Manager showing the expense input page with two
assumption sets
Figure 2. Run Manager showing multiple sensitivities using the assumption sets
from the Input Manager
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Uses the latest technology
RiskAgility FM uses the latest technology to provide
a fresh, modern user interface with powerful features.
RiskAgility FM uses the Microsoft Visual Studio Isolated Compile errors provide hyperlinks to the
Shell. This provides powerful advanced capabilities (for
example, IntelliSense, robust compiler and debugger
code for easy access and editing.
integration) for improved ease of use and productivity, with
a modern look and feel. IntelliSense (Figure 3) speeds up RiskAgility FM editions
coding by providing auto-completion and syntax guidance.
The fully integrated debugger offers abundant features RiskAgility FM will be available in Desktop, Team and
to make it easy for the modeller to step through model Enterprise editions. All editions run any RiskAgility FM
code and trace calculations, which makes everyone’s job model and offer all of the functionality described above.
easier, reduces the learning curve, and improves model The RiskAgility FM Team and Enterprise editions include
governance and control. increasingly sophisticated version control, audit, security,
governance and scheduling functionality on top of that
provided by the Desktop edition. These editions allow you
Modellers will appreciate the fast to manage and control models, projections and results
generate-and-compile capabilities in across your company.
RiskAgility FM.
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Figure 3. Code Manager showing IntelliSense auto-completion feature
7 RiskAgility FM
Provides efficient, scalable distributed processing
High-performance grid computing in combination with 64-bit compilation
enables you to avoid compromises between accuracy and speed.
RiskAgility FM provides powerful new distributed Build and use sophisticated financial models
processing features that deliver actionable results in a for enhanced risk and capital management
fraction of the time of standard distribution approaches.
These features allow you to combine multiple projections RiskAgility FM combines the benefits of a modern,
to define a nested stochastic run, with both the inner and open, flexible modelling system that can be readily
outer loops distributed to the grid to be run in parallel. adapted to your products and processes, with
enhanced distributed processing performance and
With RiskAgility FM, models can be run in your company the latest software technology. RiskAgility FM delivers
datacentre using Microsoft Windows HPC, in the cloud with sophisticated financial analytics to run your business better.
Microsoft Windows Azure or with Willis Towers Watson
vGrid – our Software as a Service scalable virtual grid We leverage our experience to bring you
solution designed specifically for use with RiskAgility FM. innovative solutions
This gives you flexible, scalable options for distributed Willis Towers Watson consultants are active in insurance
processing so you can get precise calculation results when actuarial committees and working groups, and have worked
you need them. extensively with clients to provide financial reporting and
risk management advisory services. Working with our
RiskAgility FM can produce either 32-bit as well as 64-bit software experts, these industry leaders have leveraged
compilations. The ability to produce 64-bit compilations their experience and knowledge to develop innovative
allows you to utilise considerably more memory for your financial modelling solutions.
projection calculation.
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A holistic approach to the wider risk reporting process
Solutions for Life
Solutions for Life is a comprehensive, integrated portfolio
of software tools and consulting services that provide
cutting-edge solutions across all areas of the actuarial life
modelling process that help save time and money, comply
f breed too
with regulatory demands and optimise legacy systems. st o ls
Be
It is made up of four main components:
Fl
ice
ex
lass serv
ible
1. Best of breed software tools
infrastruc
Solutions
2. Flexible infrastructure
for Life
rld- c
3. Integration capability
4. World-class advisory and support services
Wo
tur
e
In
Solutions for Life breaks down barriers, solves problems te rm
g ra
and provides confidence through accuracy, performance t i o n p l at f o
and control, by employing industry thought leadership
and advanced technology. For more information visit
solutionsforlife.willistowerswatson.com.
Solutions for Life end-to-end risk reporting process
Figure 4. How RiskAgility FM fits within Solutions for Life and an end-to-end risk reporting process
End-to-end risk reporting process
Policy Asset Risk
data data calibration
Cleansing Grouping ESG creation Assumptions Model runs Proxies Capital model Reporting
Assumptions
Adjustments
management
Solutions for Life tools and platform
Unify systems integration workflow
RiskAgility FM RiskAgility
Assumptions (Standard) EC
Cluster STAR RiskAgility
DataValidator management RiskReporter
model ESG PM
utilities RiskAgility FM RiskAgility
(Team) SF
HPC
vGrid
Azure
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With RiskAgility FM, models can be run in your company
datacentre using Microsoft Windows HPC, in the cloud with
Microsoft Windows Azure or with Willis Towers Watson vGrid.
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Solutions for Life software portfolio
Best of breed tools
DataValidator RiskReporter
Validates and cleanses data to prepare it for use in downstream Transforms raw data from multiple internal and external sources
financial modelling and reporting processes, providing easily to produce validated reports and XBRL in the format required
auditable reports to bring a level of rigour and governance to for regulatory reporting, such as Solvency II Pillar 3.
your data processes.
RiskAgility Financial Modeller (RiskAgility FM)
Emblem
Enables life insurers to run financial models that accurately
Fits predictive models rapidly to large and complex data sets reflect their company’s products and to run them in ways that
to reveal underlying patterns in customer data, including claims are easily adapted to their business processes.
experience, mortality, and renewals and conversion.
RiskAgility Proxy Modeller (RiskAgility PM)
Radar
Standardises and automates all stages of the proxy modelling
Decision support and rating engine platform which can be used process, reducing the manual effort in what can otherwise be a
to assess optimal pricing actions and seamlessly deploy rates resource-intensive process.
in a flexible and agile rating engine that integrates with existing
administration systems. RiskAgility Economic Capital Aggregator (RiskAgility EC)
Calculates and embeds flexible economic capital models in
PulseModel
day-to-day risk management with greater speed and precision.
A stochastic multistate mortality/morbidity model informed
by detailed medical research combined with expert medical RiskAgility Standard Formula (RiskAgility SF)
opinions; allows firms to rate business based on various medical Aggregates the solvency capital requirement using the EIOPA
risk factors. Solvency II standard formula for life, health and PC business
across single entities and groups.
STAR ESG
Generates economic scenarios and asset returns under Customised applications
risk-neutral or real-world bases in a globally consistent Applications and libraries to accelerate model implementation:
framework. country- and product-specific applications, ALMs and
model-pointing tools.
Flexible infrastructure Integration platform
vGrid Unify
Combined with RiskAgility FM, vGrid provides fully scalable, Automates and governs the end-to-end financial modelling and
on-demand access to compute resource, delivered as a fully reporting process by integrating multiple software applications
outsourced service by Willis Towers Watson. into user-defined workflows.
For more information
Visit solutionsforlife.willistowerswatson.com
Contact
[email protected] Follow us on Twitter @WTW_ins
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and
solutions company that helps clients around the world turn risk into a path for
growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees
in more than 120 countries. We design and deliver solutions that manage risk,
optimise benefits, cultivate talent, and expand the power of capital to protect and
strengthen institutions and individuals. Our unique perspective allows us to see
the critical intersections between talent, assets and ideas — the dynamic formula
that drives business performance. Together, we unlock potential. Learn more at
willistowerswatson.com.
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