PathWise - Aon

Type of System

  • Asset/liability management
  • Capital modelling
  • Data management
  • Economic capital aggregation
  • Economic scenario generator
  • End-to-end ERM or Solvency II solution
  • Exposure management
  • Governance, risk, compliance
  • Internal/external reporting
  • Operational risk
  • Portfolio analysis/hedging
  • Risk Management
  • Spreadsheet risk management

Type of Platform

  • Cloud
  • Server-based
  • Grid
  • SaaS

Most recent significant updates:

PathWise added the "Orchestrator" application, which automates complex workflows through a robust and user-friendly "drag & drop" interface between environments (DEV, TEST, STAGING, PROD) that are easily created and maintained in a single installation. Orchestrator provides full traceability of all business logic, including models, and scripts between all environments and includes flexible agent-based job scheduling.

Planned future enhancements:

Principle-based reserving is something we plan to support in PathWise in 2017/18. We will also support additional computation modes to speed up the execution of complex jobs to leverage the unparalleled power of GPUs even more efficiently.

Other Features

The offering facilitates

  • Curve-fitting
  • Least-squares Monte Carlo
  • Solvency II standard formula
  • Solvency II internal model
  • Replicating portfolios
  • IFRS 17

Integration with third-party or in-house systems?

PathWise can communicate with third-party databases such as Oracle and SQL, can leverage other reporting tools by using ETL scripting, and can work with enterprise job scheduler (e.g. IBM Maestro, Control-M, etc.) next to the built-in job scheduler.

Implementation and Costs

Typical implementation costs:

A trial environment can be set up quickly in the cloud to jump start development and the onboarding process. Such implementation costs are charged on an hourly rate, however, the PathWise system comes with two days of initial onsite training. Account management hours will be used if more training is required by a client.

How long does your software take to implement on site?

A trial environment only takes a day or two to set up. Depending on the number and complexity of products, implementing an entire life entity can take 4-6 months. We have implemented IFRS 17 for a large life insurer in 12-18 months, including all the cash flow models for hundreds of products for their whole life insurance business, the IT architecture, reporting and integration testing.

Key attributes of product:

Aon continues to use the latest Graphical Processing Units (GPUs) to speed up model calculations by hundreds of times versus legacy systems – speed is our USP. Because we consume much less electrical power, PathWise is a very green solution. It has integrated version control of data, models and scripts designed to be future proof 'write once and target often' software.

PathWise easily handles the largest insurance portfolios by using data structures optimised for storage and computations, and has been tested on 100+ million policy records. PathWise has the ability to easily visualise results, create reports, and set-up intelligent workflow automation.

Please name companies that use the system/solution:

PathWise is used by some of the largest life insurance companies in the world, to support valuation, hedging, new product development, and enterprise risk management activities. These include Kyobo Life, ManuLife and SunLife Financial