Product Risk Service
The Barrie & Hibbert Product Risk Service comprises two separate but complementary tools that add value throughout the product lifecycle.
Product Risk Analyser
Used as part of the product development process, this service allows product providers to instantly test a product design against objective measures and its competitors, across a wide array of features and risk measures including fund values, income levels and death benefits.
The results from this testing are crucial in identifying and communicating a product's competitive position.
Supporting a robust pricing strategy, the model can calculate the economic values of guarantees embedded in products. This can improve the understanding and management of earnings volatility, helping to deliver products that are profitable under a range of market conditions.
Product Risk Monitor
The ongoing monitoring of products and their underlying assets is crucial if providers, manufacturers and distributors are to meet the needs of their customers and their obligations under Treating Customers Fairly (TCF). Updated on a quarterly basis to reflect changes in underlying economic conditions, this service does just that through the creation of a consistent framework, making it easier to review changes in the risk and return elements of products.
Benefits of Product Risk Service
- Enables product providers to effectively differentiate their product propositions.
- Allows product providers to better understand and manage potential earnings volatility, improving product pricing and profitability.
- Makes it easier to effectively communicate the potential risks and rewards of products to the right customer segments throughout the product lifecycle.
- Provides a single, cost-effective way of helping providers meet their obligations under TCF recommendations.
- Independent analytic support and evidence for effective product targeting and governance, which can be applied consistently across a range of products.