FIS - Prophet
Type of System
- Capital modelling
- Economic capital aggregation
- Economic / risk scenario generator
- Risk management
- Stress testing
- Data management
- Solvency II solution
- Portfolio analysis/hedging
- Reserving solution
- End-to-end ERM
- Internal/external reporting
Type of platform
Other features - the offering facilitates:
- Least-squares Monte Carlo
- Replicating portfolios
- NAIC RMORSA
- NAIC Principle-based reserving
- Solvency II standard formula
- Solvency II internal model
- IFRS 17
What are the typical implementation costs?
Implementation costs vary depending on the scope of the project. Prophet Professional and our other desktop applications are simple to install with a standard setup installation package. As enterprise software solutions, Prophet Enterprise and the Prophet Data Management Platform can take longer to install and involve some business analysis to understand the required workflows, data models and dashboards. For each insurer’s risk models, we also use our own actuarial risk management libraries as a foundation. These cover regulation, liabilities and assets suitable for all lines of business and all regions. Implementation time and costs for these libraries will vary according to the size of the company and the complexity of its products.
How long does your software take to implement on site?
Again, implementation timeframes vary according to the project’s scope. But extensive out-of-the-box functionality and actuarial libraries make it easier for insurers to rapidly deploy our software and develop risk models.
Most recent significant update:
- Continued investment in Prophet’s managed cloud service (PMCS) to optimise the modelling process, improve scalability, enhance the user experience and reduce total cost of ownership.
- Enhancements to Prophet’s single platform for IFRS 17/LDTI compliance. Our end-to-end solution for IFRS 17 supports full calculations, comprehensive data management, the grouping of data and integration with FIS’ dedicated Enterprise Accounting System (EAS) sub-ledger. We followed the same roadmap to build an LDTI solution for US clients. Updates have covered the development of LDTI cash flows using conventional actuarial techniques, the calculation of market risk benefits and the ability to meet disclosure reporting requirements. Now, our clients can fully understand the impact of LDTI on their business, long before the regulation takes effect.
- Comprehensive technology upgrades to support Prophet clients and improve their experience, such as through advanced computing and distributed database technology and more flexible deployment models such as Software as a Service.
- Enhancements to our general insurance/P&C solutions to make them even easier and more intuitive to use, and further support IFRS 17 practices and interpretations.
Planned future enhancements:
- Taking our managed services, cloud and SaaS offerings to the next level by providing a truly dedicated, air-gapped, secure, high-performance environment.
- Deepening functionality for managing IFRS 17 and LDTI, with out-of-the-box, end-to-end solutions for all markets and lines of business, which we continue to adapt and enhance as the standards evolve.
- Continued investment in advanced vector extensions (AVX), graphics processing units (GPU) and distributed data platforms, to help clients increase throughput and manage larger volumes of data more effectively, particularly when they split their data across different locations and storage classes.
- Aligning actuarial and technology consulting services, to help clients optimise performance and get even greater value from their investment in risk management.
How does your solution integrate with third-party systems or in-house systems?
The Prophet Data Management Platform provides a hub for integration with other systems; on the left-hand side through data-cleaning and binding/management of assumptions; and on the right-hand side with the results database and data repository. Throughout, you can drill back from results to data sources, while using the Prophet Control Centre to manage inputs, automate processes and connect to other platforms.
Prophet integrates with a number of third-party vendors to provide additional support for structured mortgage and asset-backed securities, as well as providing embedded functionality for economic scenario generation. We also support all standard economic scenario generators.
What is the key attribute of your product(s) that differentiates it from your competitors?
Prophet is an enterprise risk management system that brings high performance, control, scale and automation to actuarial modelling. With over 10,000 users globally, Prophet meets 100% of our clients’ needs and exceeds their expectations by offering a widely used, tried and tested, end-to-end solution, with all the latest data and computing capabilities.
Whether you run the solution on premise or in the cloud, Prophet offers separate environments for developing and producing actuarial models, and full control and audit across data input, results output and end-to-end workflow. With clear, easily comprehensible example models, clients can perform nested calculations and reuse the same model for many purposes, supporting both calculations and projections.
FIS has invested heavily in upgrading Prophet’s technology to support our clients and improve their experience. Most recently, we have incorporated advanced computing technology like AVX and GPU, adopted distributed database technology to support larger volumes of data, and are developing a SaaS offering.
As the insurance industry continues to grapple with massive regulatory changes, both U.S. GAAP Long Duration Targeted Improvements (LDTI) and IFRS 17 will test insurers’ underlying infrastructure. With out-of-the-box solutions for all markets and all lines of business, Prophet leads the industry by helping clients not only address the changes, but also thrive in the new environment.
What trends are you seeing in terms of customer demand?
Industry challenges and the global pandemic especially are driving the need for insurance companies to do more, more quickly and in different ways.
The crisis has highlighted the importance of being able to quickly refresh valuations, models and pricing, which makes speed and elastic capacity essential. And in these uncertain times, insurers also need the flexibility to more quickly adapt, adjust and run risk models, so they can better assess the impact of new stresses and scenarios, before they develop.
At the same time, firms are looking to access their systems from different physical locations and working environments – and host them in a flexible, secure IT environment that’s easy to maintain.
And all of this must happen alongside business as usual and other projects like LDTI and IFRS 17.
Trust FIS Prophet to support compliance with #IFRS17 and #USGAAP #LDTI – and help you add value along the way.