FIS Insurance Risk Suite - Prophet
Type of System
- Asset/liability management
- Capital modelling
- Data management
- Economic / risk scenario generator
- End-to-end ERM
- IFRS 17 solution
- Internal/external reporting
- LDTI solution
- Portfolio analysis/hedging
- Reserving solution
- Solvency II solution
Type of platform
Other features - the offering facilitates:
- Least-squares Monte Carlo
- NAIC Principle-based reserving
- NAIC RMORSA
- Replicating portfolios
- Solvency II internal model
- Solvency II standard formula
What are the typical implementation costs?
Implementation costs vary depending on the scope of the project. Most new clients moving to our system opt for our managed public cloud service, which makes for a much more streamlined implementation. For an on-premise installation, costs vary according to how much of the end-to-end suite that a client has licensed and the risks and regulations the firm is looking to meet. Thanks to our extensive actuarial libraries, which cover life, health, annuity, retirement and general insurance/property and casualty (P&C), as well as an extensive range of regions and regulations, clients can build new models very quickly.
How long does your software take to implement on site?
Again, implementation timeframes vary according to the project’s scope and whether the solution is hosted in our managed cloud or on premise. But extensive out-of-the-box functionality and actuarial libraries make it easier for insurers to rapidly deploy our software and develop risk models to meet internal risk needs as well as manage solvency regimes, IFRS 17 and LDTI.
Most recent significant update:
- Continued investment in our managed cloud service to optimise the modelling process, improve scalability, enhance the user experience and reduce total cost of ownership.
- Enhancements to our single platform for IFRS 17/LDTI compliance. We have made significant updates over last 12 months and in particular a large update in Q2 2021 across the whole suite, covering all of the calculation, data management and accounting subledger components for the accounting standards.
- Comprehensive technology upgrades to support our 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 (SaaS).
- 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 enhanced cloud-native functionality, increasing scalability and reducing costs
- 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 in response to feedback from implementations.
- Solvency modernization. With insurers and regulators clearly reviewing solvency regimes and also internal risk models post Covid, we have already delivered updates to clients over the last year but will continue to support enhancements to solvency modelling.
- 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?
FIS®Insurance Risk Suite’s integrated 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 built-in process automation tool to manage inputs, automate workflow and connect to other platforms.
Insurance Risk Suite 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?
Insurance Risk Suite is an enterprise risk management system that brings high performance, control, scale and automation to actuarial modelling. With over 10,000 users globally, the system meets 100 percent 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 system on premise or in the cloud, Insurance Risk Suite 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 Insurance Risk Suite’s technology to support our clients and improve their experience. Most recently we have incorporated advanced computing technology like AVX, adopted distributed database technology to support larger volumes of data, and are working towards providing SaaS-based offerings in the future.
As the insurance industry continues to grapple with massive regulatory and reporting 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, Insurance Risk Suite 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. Speed and agility have never mattered more, when it comes to making changes to risk models, running those models with additional scenarios and stresses – and getting answers to inform strategy and measure risks and solvency.
For our clients, the three big trends we have seen emerging from the pandemic are a focus on operational resiliency, greater use of cloud computing and a drive towards solvency modernization.
First, insurers’ workforces need to be able to work and access key systems during a crisis, which didn’t happen smoothly for all insurers in the pandemic. This prompted widespread reviews of operational resiliency.
Second, insurers need to not only access key systems in a crisis, but also run risk models to assess the situation. Given the inevitable uncertainties of the pandemic, this required higher volumes of both modelling runs and compute power than usual. Here, the cloud’s “elasticity” clearly came into its own, by allowing insurers to access additional infrastructure at times of peak usage and only pay for what they consumed.
Last, Covid-19 tested Solvency II and all solvency regimes. With lots of lessons learned, we are now seeing the acceleration of new regimes and regulators looking to make changes and enhancements to solvency and capital management.
And all of this must happen alongside business as usual and other projects like LDTI and IFRS 17.
FIS® Insurance Risk Suite (formerly Prophet) brings performance, scale and automation to #actuarialmodelling in the cloud.