Cross-asset analytics provider Numerix has launched an insurance solution model for risk management and hedging of annuity products, including variable annuities. The firm acquired Leading Hedge from Ernst & Young in 2010, but has now revamped the platform.
The company aims to attract variable annuity participants through faster time to market on new product designs, quick product development and customisation, and access to payoff code making it easier to place new products on the platform and its mapping technology.
"The post-financial crisis environment has created new challenges for variable annuity managers and the call for more effective risk and hedging strategies presented a unique opportunity for Numerix to innovate and bring model enhancements from capital markets to the insurance industry," said president and COO at Numerix, Steven R. O'Hanlon. "With Leading Hedge, clients are able to quickly model and hedge the most complex design features such as target volatility and constant proportional portfolio insurance (CPPI)."