Life company actuaries have developed a wide range of techniques for modelling life insurance products, such as profit testing and embedded values. These techniques can be equally well applied to other financial services products. We have therefore developed the Financial Services library for Prophet which enables these techniques to be applied to the following product types:
- Unit Trusts / Mutual Funds
- Mortgages
- Credit Cards
- Bank Accounts
- Term Deposits
Calculation Features
For each product type, you can:
- Make projections of future sales, redemptions, fees, expenses and profits
- discount future profits at customer, product or company level
- report on statistics such as the number of accounts and account balances
- understand the key drivers of value
- investigate the sensitivity / uncertainty in the results by making projections using a variety of assumptions
- identify problem areas, such as low value products or market segments
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Product Features
Units Trusts / Mutual Funds
Features include:
- Explicit sales and redemptions
- Explicit fees and expenses
- Different classes of assets
- The effect of margin squeeze
Mortgages
Features include:
- Fixed, variable and interest only loans
- Transfers between fixed and variable accounts
- Extra payments and cash withdrawals
- Offset accounts
- Mortgage insurance
Credit Cards
Features include:
- All common fees and charges
- Purchases and cash advances modelled explicitly
- Overseas and point of sale transactions
- Interest-free periods
- Varying repayment patterns
- Different types of credit cards
- Introductory interest rates
- Card protection schemes
Bank Accounts
Features include:
- All common fees and charges by type and frequency of transaction
- Regular deposits and withdrawals
- Lump sum deposits and withdrawals
- Different frequency to credit interest
- Bonus interest payments
Term Deposits
Features include:
- All common fees and charges
- Varying interest rate structures
- Different frequencies to credit interest
- Interest payments to another account
- Compound interest options
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To arrange a demonstration of the Financial Services Library, please contact your local SunGard account manager.
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Other products: Prophet - Life | Prophet - ALS | Prophet - General / P&C | Glean
