Kyobo Life adopts Aon's PathWise platform
South Korean life insurance company Kyobo Life has successfully implemented Aon’s PathWise computing platform in preparation for the IFRS 17 and K-ICS financial reporting regimes.
The firm embedded PathWise as its all-in-one financial risk management platform to fulfil a range of tasks, including assumption management, economic scenario generation (ESG), asset-liability management (ALM), hedging, and K-IFRS, IFRS 17, and K-ICS reporting – which require a variety of scenarios and shock-based computations that demand hundreds of millions of paths of calculations.
In contrast to legacy actuarial systems, PathWise utilises the parallel processing capabilities of graphical processing units (GPUs), which contain thousands of processing cores each to simultaneously produce huge volumes of scenarios and handle policy-by-policy basis calculations without using approximations or shortcuts such as scenario reduction, curve fitting, and policy grouping.
Kyobo Life's actuarial infrastructure team leader, Kim Yeon Jung, said: "Accurately analysing financial effects and establishing strategies under the new regulations requires a lot of computations, and so we needed high-performance computing software for such difficult workloads. In addition, change management and system control functions for complex models and large amounts of data are necessary too. PathWise's high performance ensured the necessary speed for computations, along with flexibility and stability for ease of management under new regulations such as IFRS 17 and K-ICS."
Peter Phillips, president and CEO of PathWise Solutions Group, said: "Being able to perform complex calculations at such speeds offers PathWise clients clear efficiency gains, which can translate into real cost savings for their businesses. As more companies realise they need to carefully consider their approaches to regimes such as IFRS 17 and K-ICS, and also want the benefit of a single platform for their financial reporting, PathWise can step in and help them to overcome their challenges."
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