Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life

PR82843

CHICAGO, Feb. 12, 2020 /PRNewswire=KYODO JBN/ --

- PathWise successfully prepares Kyobo for IFRS 17, K-ICS regimes and beyond

Aon plc (NYSE: AON), a leading global professional services firm providing a broad

range of risk, retirement and health solutions, today announces that Kyobo Life has

successfully implemented its PathWise high performance computing platform in

preparation for the IFRS 17 and K-ICS financial reporting regimes.

The South Korean life insurance company 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 utilizes the parallel processing power 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.

Conversely, legacy actuarial software platforms are often based on central processing units

and use sequential computations, making them far less able in terms of speed and efficiency.

In approximately five hours, PathWise is able to calculate Kyobo's IFRS 17 best

estimated liability and risk adjustment for 40 million policies on a policy-by-policy

basis using 60 GPUs. The entire financial statement generation process, including

the financial statement movement analysis, can be completed in just 36 hours.

Meanwhile, PathWise can calculate the required capital amount for Kyobo's K-ICS

QIS 2.0 within 30 hours, with no significant impact on the calculation run-time

even when the number of scenarios increased from 200 to 1,000.

Kyobo Life's actuarial infrastructure team leader, Kim Yeon Jung, said:

"Accurately analyzing 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 realize 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."

For further information, please contact: Alexandra Lewis

(alexandra.lewis@aon.com ) (+44 20 7086 0541 / +44 759 555 2613)

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SOURCE: Aon plc