Asset-liability analysis goes digital

New app condenses pension assets and obligations for on-the-go reference

Pension professionals wanting fast occupational pension risk analysis while out of the office, can now use a new digital app. PRiAS+, produced by Allianz Global Investors, aims to provide a powerful pension risk analysis, showing the projected development and volatility of a corporate pension plan’s obligations.

Including key parameters such as discount rate, the app projects pension payments, the liabilities arising on the plan sponsor’s balance sheet and the ensuing funding level. This condenses a multitude of actuarial parameters into a simple program. As Michael Heim, an actuary with Allianz Global Investors and member of the German Institute of Pension Actuaries explains, this makes risk analysis easier to grasp.

“With the help of PRiAS+, we can visualize from the start what is often perceived as a complex issue and sensitize plan sponsors towards pension risks, addressing them in a modern, insightful and transparent manner,” he says.

Using data based on five different parameters, the program creates a prognosis showing how much a corporate plan sponsor should expect to pay in terms of benefits and pension obligations over the next 30 years. The app then forecasts the ratio of pension assets to pension obligations, both in an expected scenario and in a stress scenario, based on probability tables for death or disability and other factors. The results of all analyses are then explained in detail.

“The actuarial obligation forecast can be used as a basis for the ensuing analysis of pension assets,” says Florian Ueltzhöfer, who co-developed the app. It also visualizes balance sheets obligations and the forecasts of pension payments through graphs. The app is rounded off with a focus on the customer’s pension assets.

The financing of pension obligations and asset liability management are becoming increasingly important issues in the current low interest rate environment. This app offers a quick reference for pension professionals to help manage them.

Asset-liability analysis goes digital

New app condenses pension assets and obligations for on-the-go reference

Asset-liability analysis goes digital

New app condenses pension assets and obligations for on-the-go reference

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