Insurers can receive an improved view of risk related to theirassets and liabilities through the launch of SunGard's updatedinsurance asset-liability management capability. The iWorks ProphetAsset Liability Strategy (ALS) library helps insurers makeinvestment decisions at a time when many carriers are rebalancingtheir asset portfolios to enhance business results.

James Knight, vice president and actuary for MetLife's actuarialmodeling group believes SunGard's ALS library is helping MetLifebuild flexible solutions that allow the carrier's existingliability models to become dynamic asset-liabilitymodels. 

"The ALS models are used in solvency calculations and are anintegral part of our risk management framework," saysKnight. "The ALS Library helps give us the power to morefully understand the risks we face and better manage the businessto strive for optimal results."

The iWorks Prophet ALS library helps insurers meet stochasticALM requirements, such as modeling the impact of managementdecisions and policyholder reaction, according to SunGard. It provides them with a framework for performing businessstress testing and the ability to create comprehensive modelsaligned with current and evolving regulatory reportingrequirements, such as the Risk Management and Own Risk and SolvencyAssessment (RMORSA) in the U.S., and Solvency II in Europe. 

"iWorks Prophet goes beyond 'tick-the-box' compliance to helpcompanies build more sophisticated risk models that include theirassets, liabilities, capital requirements, and the complexinterplays between them," says John Winter, director of productmanagement, SunGard's iWorks Risk Management solutions.

For U.S. insurers, the ALS library now covers a comprehensiverange of assets, including mortgage-backed securities andcollateralized mortgage obligations, which are receiving renewedinterest as investment instruments.