Insurance and Actuarial Science

• Financial Services Overview
• Investment Management
• Risk Management
• Insurance and Actuarial Science
• Econometrics and Economics
• Algorithmic Trading
• Pricing and Valuation

Actuarial research groups use MathWorks products to:

• Analyze large data sets
• Price annuities and unit-linked policies
• Calculate reserves
• Research dependency effects
• Help comply with expanded regulatory requirements, such as Solvency II

They experiment and test their ideas by running simulations quickly and ensure that their models, including the core algorithms on which the models are based, are traceable, transparent, and documented.

Design Innovative Products and Comply with Regulatory Requirements

Whether in life or nonlife situations, actuarial teams, through effective risk analysis and projection, can assure regulators that their organizations can remain solvent in the long term. Research groups use MATLAB and related toolboxes to price variable annuities, guaranteed minimum benefit options, term assurance, and endowment policies.

Develop and Customize Projection Models

Research groups in reinsurance, insurance, and bank asset and liability management use MATLAB and related toolboxes to reduce development time and improve the run-time performance of Microsoft Excel models by up to 90%.

They easily access historical customer and industry data, perform statistical trend analysis and generalized linear modeling, adjust statistical distributions, run Monte Carlo simulations, view cash flows, and build hedging strategies. The results from these activities enable them to:

• profile liabilities and asset portfolios
• calculate reserves
• develop valuation systems
• perform stochastic projections to calculate economic capital and market-consistent embedded values
• optimize investment strategies
• understand guarantee sensitivities

Securely Deploy Actuarial Models into Web, Database, and Desktop Environments

To accommodate the software development standards and model and algorithm traceability requirements imposed by regulatory authorities, developers can:

• Deploy end-user software through GUIs or Web front-ends, which offers better protection from user error and tampering than through spreadsheet applications
• Automatically generate components for deployment, which establishes a clear link between deployment and development

Using MATLAB with related deployment products, researchers deploy standalone applications or software components that integrate with C and C++, Visual Basic, Excel, .NET, and Java based applications.