WTW Enhances RiskAgility FM with New Deferred Pension Annuity Capabilities for U.S. Insurers

Quick Summary

WTW has launched RiskAgility FM U.S. Library 7.4, a significant upgrade to its financial modeling platform. This release introduces a Deferred Pension Annuity (DPA) application designed to help life insurers manage Pension Risk Transfer (PRT) transactions and value complex pension blocks with deferred lives effectively.

How Does RiskAgility FM Solve PRT Complexity?

The financial modeling platform from WTW addresses the growing demand for precision in the Pension Risk Transfer market. By introducing the DPA application, WTW allows insurers to model benefit payments for participants who have not yet reached retirement age. This is critical for valuing pension blocks that include deferred lives, a segment that often presents significant actuarial challenges.

• Supports multiple retirement ages and diverse forms of payment.
• Generates projected cashflows and reserves for defined benefit plans.
• Utilizes independent assumptions for experience versus valuation metrics.

This update ensures that insurers can handle increasingly diverse specifications within the U.S. market, providing a unified platform for both immediate and deferred annuity pricing.

What New Features Are Included in Version 7.4?

The latest version of the financial modeling platform focuses on flexibility and granular data analysis. The DPA application specifically supports multiple decrement states, including active employment, disability, and death. This allows for a more realistic simulation of participant life cycles and their impact on long-term liabilities.

• Includes joint life and certain period annuity types.
• Models early retirement reductions and late retirement increases.
• Features flexible assumption formats for custom benefit designs.

By integrating these features, WTW helps insurers navigate complex PRT transactions with greater confidence, backed by a decade of industry-leading expertise in the North American life insurance sector.

FF NEWS TAKE:

WTW’s update to its financial modeling platform definitely moves the needle for the life insurance industry. As the Pension Risk Transfer market continues to swell, the ability to accurately price deferred annuities becomes a competitive necessity. By embedding these capabilities into the existing RiskAgility FM ecosystem, WTW is reinforcing its position as the go-to provider for complex actuarial modeling, effectively lowering the barrier for insurers to take on larger, more diverse pension blocks.