STAR ESG - Willis Towers Watson

Type of System

  • Asset/liability management
  • Economic scenario generator
  • Portfolio analysis/hedging
  • Risk Management

Type of Platform

  • Desktop-based
  • Server-based
  • Grid

Most recent significant updates:

In April 2017 we released version 3.0 of our risk neutral model STAR RN. This includes features designed to increase automation, speed and quality of the scenario generation process. The key enhancements include:

Data import and export functionality; making the batch running of multiple sets of scenarios easy

Faster generation of output files

Extra features to facilitate analysis of scenario diagnostics across multiple scenario sets, so validation criteria can be easily checked.


Planned future enhancements:

Over 2017-2018 we are planning a series of enhancements to our real world model STAR RW. These enhancements will improve the speed and robustness of calibration as well as providing greater flexibility to target different investment views.
In early 2018 we also expect to release a new version of STAR RN with a number of improvements including an enhanced correlation structure between asset classes.

Other Features

The offering facilitates

  • Curve-fitting
  • Least-squares Monte Carlo
  • Solvency II standard formula
  • Solvency II internal model
  • Replicating portfolios

Integration with third-party or in-house systems?

STAR ESG integrates seamlessly with many of Willis Towers Watson's other software products: with Igloo for financial modelling, with RiskAgility Proxy Modeller to produce nested stochastic scenarios as part of a Least-Squares Monte Carlo modelling solution, and with Willis Towers Watson Unify. STAR ESG models are also used in a large number of third-party systems. Outputs can be generated in any data structure in the formats .CSV or .TXT. Alternatively, results can be written directly to a database for sharing with other third-party systems. 

Implementation and Costs

Typical implementation costs:

In most cases there is no implementation cost, as this is largely done by clients on-site.

How long does your software take to implement on site?

Most users get the models installed within hours. The models are self-contained with intuitive interfaces so users can start using the software immediately.

Key attributes of product:

STAR ESG is a comprehensive solution for capital setting, risk management, hedge design, ALM, asset allocation and market consistent valuation requirements. Its scope is global, with standard calibrations for 26 economies and the capability to generate returns for a very wide range of asset classes.

Technically robust models are combined with Willis Towers Watson's in-house investment views, fusing together quantitative technology with qualitative expertise to generate a realistic distribution of outcomes. Calibration tools give unparalleled control to determine the path of projected outputs, an essential pre-requisite for using the model to take business decisions.