Advanced Optimization Tools: Improve model runtime and performance with Moody’s AXIS™ Actuarial System

Conducting actuarial analysis within a life insurance and annuity business involves processing ever-increasing volumes of data for actuarial models that are also growing in size and complexity.

Harmonizing data fields into broader categories or fewer data tags takes time, and if the harmonization goes too far, data fidelity and accuracy fall away.

This work needs to be done within tighter timescales as the business requires more frequent analysis to support critical decisions.

No one wants to compromise on the quality of analysis, so how can you use your actuarial modeling system to reduce runtimes and increase accuracy?

Working with our broad, global community of AXIS™ Actuarial System customers, we know that increasing actuarial modeling efficiency is always a core business priority. In response, our product development teams have worked hard to position the AXIS System at the cutting edge of neural networks and clustering.

Advanced optimization tools

We have introduced new Advanced Optimization Tools for the AXIS System, with their capabilities categorized into two main areas: compression techniques and proxy functions.

Using data compression techniques helps filter out redundant or irrelevant inputs, allowing customers to perform extensive analyses with ease, for rapid and higher-quality estimations of full model results.

Using proxy functions can help eliminate the need for stochastic simulations. By leveraging proxy functions at critical points in your projections, the AXIS System helps eliminate bottlenecks and speed up calculations for intermediate results, such as projected prices of complex derivatives or structured securities that lack simple closed-form solutions.

The AXIS System includes tools for configuring proxy functions, generating training data, and calibrating model parameters. It supports generalized linear models (GLM) and neural networks (NN) and allows for model configurations and parameters to be imported from external sources.

With the flexibility to combine Advanced Optimization Tools within the AXIS System, customers can create tailored solutions that balance speed and accuracy to meet specific needs, and seamlessly integrate with existing AXIS System features to enhance the overall experience. 

Find out more about the AXIS Actuarial System here.