Barrie & Hibbert launches product to help insurers manage the risks in variable annuity products
Last updated 11th May 2009 - Recent times have clearly represented a challenging period for the global economy and the financial services sector in particular.
Recent times have clearly represented a challenging period for the global economy and the financial services sector in particular. The insurance sector has not been immune from such malaise. In particular the volatile financial market environment has exposed the limitations of some companies’ strategies for managing the market risk exposures created by the provision of significant long-term guarantees in variable annuity products.
Based on Barrie & Hibbert’s world-leading insurance Economic Scenario Generator modelling suite, and extended to meet the specialist demands of complex variable annuity hedging applications, Barrie & Hibbert has launched a new product for hedging groups that want to maintain leading-edge internal modelling capabilities.
B+H Hedge is an Economic Scenario Generator modelling and calibration software service for use in fast, accurate calculation of VA hedging greeks. It also provides a real-world modelling capability that can be used in hedging strategy projection.
Andy Frepp, Corporate Development Director of Barrie & Hibbert, says “This is the most interesting period of financial market volatility that has been experienced since variable annuity hedging programs were put in place. The B+H Hedge will ensure variable annuity providers have the tools they need to properly assess and manage risks in long-term market exposures, allowing them to have high frequency hedge rebalancing and monitoring.”
