The partnership between Copenhagen Simulations and Keylane will help life and pension companies to stay ahead of new Solvency II regulations.
Integrated package solution
It is expected that the Danish Financial Supervisory Authority will issue guidelines end of March 2018 on how to quantify the provisions for solvency purposes under “Solvency II compatible methods” in order for Denmark to follow the European standards in the area.
To support the above Keylane has partnered with experts in financial risk management – Copenhagen Simulations – that offer a full Economic Scenario Generator (ESG). This, combined with Keylane’s core competencies in actuarial/ mathematical methods and software solutions, has created the foundation for a partnership that meets the current regulatory challenges through an integrated package solution called the Keylane ALM Projection Model.
The partnership integrates the necessary skills the calculation of stochastic provisions requires. On one hand, deep knowledge is essential about actuarial issues on the other hand, this knowledge must be combined with the latest techniques in the financial mathematical field.
An advanced calculation platform
2017 was the beginning of our ALM journey at Keylane. We welcomed our first customer on Keylane’s proprietary ALM solution, and in cooperation with existing and new customers as well as through a comprehensive prototype process, we have further enhanced the solution. The Keylane ALM solution is now ready to meet the life and pension companies’ future need for an advanced calculation platform in the Danish and European markets.
Stochastic provisions based on a full ALM projection model
By joining forces with Copenhagen Simulations, we have created the basis for a full model for calculation of stochastic provisions. The Keylane ALM Projection Model contains the following three main elements:
1. Cashflows for modelling customer obligations – Keylane Valuation
2. ESG to generate future financial market conditions – CphSim ESG
3. A projection engine – Keylane ALM – that links assets and liabilities with customer-specific business rules, applicable law and industry standards (the Keylane ALM solution is integratable with other ESG solutions and cash flow generators)
Thus, the full ALM projection model embraces both assets and liabilities, including customer-specific projections at all levels – customers’ deposits and assets, policies, contribution groups or the entire company’s balance.
Contact us for more information
Please contact Chief Actuary Mads Brostrøm Storgaard firstname.lastname@example.org or VP Sales Life & Pension Nordics Lars Sønderby email@example.com if you would like to hear more about the Keylane ALM Projection Model and how you stay ahead of legislative requirements.
Copenhagen Simulations – is an independent software supplier with expertise in both valuation and risk management of financial exposure, using both simulation of future market data (ESG) and financial numerical methods (including Monte Carlo). For more information visit www.cphsim.com
Keylane – is a leading European supplier of standard SaaS solutions for the insurance, life and pension industry. Keylane is headquartered in Utrecht, The Netherlands, and has over 750 employees across offices in Europe. In April 2017, Keylane acquired Schantz, a supplier of standard software solutions for life and pension companies and holistic financial planning tools for banks. For more information visit wp.keylane.com