Prophet is a highly flexible application which is used across a wide range of financial industries. This reflects the strengths of the consistency brought through the library framework matched with the flexibility of the development environment to accommodate new and innovative demands.
A range of actuarial libraries cover the breadth of products across the life insurance industry, including conventional, unit linked, universal life, income protection and other health insurance products. Each client adapts these libraries to meet their own particular preferences over data throughput, calculation precision and accessibility to future developers.
- Product pricing and design
- Surplus and bonus strategy analyses
- Current and projected contribution requirements for group pension schemes.
- Sophisticated Asset/Liability modelling
- Deterministic and Stochastic cash flow and financial projections
- Stochastic projections
- Stochastic on Stochastic projections
- Statutory valuations - Net premium, gross premium and discounted cash flow valuations
- Embedded value /appraisal value assessments - Traditional or Market-consistent
- Analysis of surplus and movement in embedded values
- US GAAP Cash flow Testing
- Dynamic solvency testing
- Risk Based Capital
- Economic Capital
- Proxy Modelling
- Principle Based Internal Models
For more specialist insurance providers, we offer:
The Prophet Variable Annuity modules model many different types of guaranteed benefits typically found around the world in variable annuity products. These modules allow insurers to price, reserve and calculate values (including market consistent) on contracts as well as project cash flows. The module is rich in features and allows for both nested stochastic modelling and calculation of Delta and Gamma Greeks.
Prophet’s open and flexible development environment enables models to be easily customised to cater for company-specific features. When used in conjunction with other libraries (in particular, the Asset Liability Strategy Library), the variable annuity products can be used as part of the wider risk management model of the company.
Creditor business brings some unique challenges to some modelling tools. With some features common to life insurance, and other common to non-life insurance, the Prophet actuarial tool excels in being simple enough to deliver easily understood coding and models accurately reflecting the business, at the same time as allowing the insertion of more complex code to replicate specific features, or to call proprietary tools.
The Financial Services Library allows for retail financial products sold by financial institutions to be priced, projected and valued. The library has great flexibility and the products can be run stochastically and linked to an index of rates. Products covered out of the box: Unit trusts/Mutual funds, Mortgages, Credit Cards, Terms deposits, and Bank accounts. Mortgages prepayment rates can be customised to use either in-house or third party prepayment models. The library contains a wealth of standard features and is extremely flexible, allowing easy customisation for any company specific features.
Bulk Annuities / Group Pensions
A number of significant bulk annuity and group pensions companies around the world use Prophet to manage and model their business lines, including the costing of transfers of entire schemes. Prophet's ease of use and its flexibility to adapt to the sensitive yet critical details of the scheme and the valuation bases makes Prophet the ideal product for these providers. As an example, intricate mortality improvement bases can be defined to accurately assess the value and capital strains of variations on long-tail business.