LDTI solution of the year: FIS
The FIS Insurance Risk Suite, formerly known as Prophet, earned the judging panel's approval for being a powerful, scalable and comprehensive tool for the demanding requirements of the Long Duration Targeted Improvements (LDTI) accounting standard.
LDTI was published in August 2018 and FIS has continually updated its LDTI capabilities to reflect market feedback and emerging industry views.
For instance, one of the challenges with LDTI is the evolving interpretation of the standard. The American Academy of Actuaries took until early October 2021 to release definitive guidance on how to calculate market risk benefits (MRB) for fixed indexed annuities and structured annuities. And later that month, FIS provided a solution to clients for these calculations.
The judges praised the tool for being flexible as insurers can support all levels of reporting granularity, giving them more flexibility for their implementations.
Scot Glasford, senior actuarial product manager at FIS, says even after LDTI's effective date, which is 1 January 2023 for listed entities and 2025 for others, there will still be many areas where reporting practices and processes will be optimised.
"As auditors and insurers learn to live with LDTI, the way the accounting standard is embedded into insurers will inevitably increase – and FIS will constantly update its solutions to reflect best practices and customer needs."