Annuity Risk provides a cloud platform that automates pricing of custom indices and exotic option payoffs for annuity and IUL hedging, consolidating derivative data and delivering real‑time risk dashboards. The solution includes a hedging order management system, policyholder behavior analytics, and hedge accounting tools to improve hedge effectiveness and regulatory compliance for life insurers and asset managers.
Funding
Funding not disclosed
Founders
Product
Problem
Insurance carriers and asset managers that issue annuities and indexed universal life (IUL) policies must hedge complex market exposures, but manual derivative workflows, inaccurate pricing, and limited visibility into risk metrics increase operational risk and reduce hedge effectiveness.
Solution
Annuity Risk offers a cloud‑based derivative data management platform that automates pricing of custom indices and exotic option payoffs, enabling precise hedge budgeting. Integrated risk reports and interactive dashboards provide real‑time visibility of all relevant risk metrics from multiple perspectives, supporting informed decision‑making. The platform includes a dedicated hedging order management system tailored to annuity and IUL hedging, streamlining trade execution and monitoring. By leveraging policyholder experience data, insurers can model behavior-driven cash flows to refine product design and improve profitability. Hedge accounting tools help maintain high hedge effectiveness, ensuring compliance and protecting balance‑sheet stability.
Target Audience
Primary customers are life insurers, annuity providers, and asset management firms that manage annuity and IUL hedging programs and require integrated risk and derivative management solutions.
Features
- Automated custom option pricing engine for bespoke indices and exotic payoffs
- Centralized derivative data repository that de‑risks pricing and valuation workflows
- Real‑time risk reporting suite with customizable dashboards covering market, credit, and liquidity metrics
- Specialized hedging program with order management system built for annuity and IUL exposures
- Policyholder behavior analytics to model lapse, surrender, and premium patterns for product optimization
- Hedge accounting module that tracks effectiveness ratios and supports regulatory compliance