ATLAS – the Variable Annuity Solution
Variable Annuities (VAs) have been a major success story in both North America and Japan. With four out of the top five insurers in Europe now offering VA products, this success looks set to be replicated across Europe. Our experience suggests that the success of insurers in this market depends on their understanding of variable annuities risk management.
Successfully managing the risk of VAs requires a more sophisticated approach to risk management than Insurers have typically used for more traditional products. Advanced companies integrate product development and pricing, in-force management, asset-liability strategy and hedge execution.
ATLAS is Oliver Wyman’s platform for modelling and managing the risk of variable annuities, expressly engineered to meet the risk management needs of variable annuity providers.
ATLAS is a robust, complete VA platform that offers unparalleled speed to support daily hedging programs, without compromising on the flexibility required for rapid product development in a competitive variable annuity market. ATLAS offers superior functionality enabling the projection of key financial metrics such as earnings and capital, allowing managers to understand the potential P&L or balance sheet impact of different hedging and product strategies. ATLAS also includes an integrated Economic Scenario Generator (ESG) that allows stochastic modelling to inform every part of the product cycle.
Oliver Wyman’s proven track record and extensive global client list mean that our expert consultants are able to draw on best practices and years of experience to:
- Facilitate the successful implementation of ATLAS across the business
- Ensure the system goes operational and that there is a complete transfer of knowledge to your staff to ensure the ownership of ATLAS is brought in-house
- Deal with any queries or issues that may arise, and create any bespoke functionality you may require, in a timely manner
ATLAS is licensed to firms, not departments, so it will take care of all your VA software needs within one licensing arrangement. Other VA hedging platforms and software solutions are available, but at Oliver Wyman we believe that the integrated approach of one ATLAS across the business makes it the right choice for the successful risk management of variable annuities.
