AXIS Group Annuity Module

The AXIS Group Annuity module supports creating and managing the base actuarial models of group accumulation annuity products of the deposit administration type and offers numerous features to support the specific requirements of modeling group deposit administration plans at both group and certificate levels, including:

  • Modeling of individual certificate movement to and from the group, as well as the lapse pattern of the group itself
  • Expense charges include those paid by group sponsor, in addition to certificate level charges deducted from fund balances
  • Product features and assumptions may depend on either total group assets and number of certificates, or on the asset level of each individual certificate, including:
    • Bonus interest rates with banding or tiering, management fee reductions with banding or tiering, policy fee schedules commission scales
    • Expense assumptions
  • Choice of approach to certificate modeling:
    • Each cohort of entrants into the group and allocated assets can be modeled separately, allowing more detailed modeling when bonuses and charges are based on individual certificate fund balances
    • The group of certificates and total fund balance can be modeled in aggregate, resulting in a simpler model with much quicker run-time
  • Multiple investment options for fund balances through investment accounts

The AXIS Group Annuity module supports many reserves methods, including:

  • Fund value
  • Cash value on certificate lapse
  • Cash value on group lapse
  • Maximum of certificate and group lapse cash value
  • Fund - modified DAC
  • Simple discount method
  • Fund - DAC (level amortization)
  • Fund - DAC (amortize using rates in table)
  • Fund - modified DAC (amortize on positive base only)

Uses of the AXIS Group Annuity module include the following for group deposit annuity plans:

  • Pricing and design
  • Valuation
  • Financial Statements
  • Statistics on number of lives and total face amounts
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Embedded Value and appraisal
  • Asset liability management
  • Required Surplus
  • Aggregate stochastic reserve and capital requirement based on CTE methodology
  • Stochastic analysis
  • NAIC Financials
  • US GAAP Financials