One of the most popular actuarial softwares used by insurance companies is the PROPHET. It is frequently used during the following tasks:

  • Embedded Value calculation

  • Profit testing of the insurance products

  • Establishing budgets and forecasts for middle – and long term

  • Estimating and forecasting future cash flows

However, the software does not always fully match the underlying model of the company's products. In order to use the software efficiently , it is necessary to tailer-made it. ModelOffice Ltd provides the following services:

  • Identifying the differences during a GAP analysis between the underlying actuarial model of the products and the model supported by and built into the PROPHET libraries. We provide detailed information about differences and GAPs. We also determine what kind of developments are necessary to obtain the required flexibility and functionality.

  • Full-scale development. It contains the library-development, creation of the products and code tables and testings too. Depending on the client's request, the development can also include the automation of producing the model points and the reports.

  • Leading the project and producing detailed specification for the developers. This option can be useful for companies having enough human resources to share the development roles with us.

One of the most important issues we take into account during the development is to prepare a model that is easy to parameterize. Using the terminology of the PROPHET it means that the aim is to create just a small number of „PRODUCT”. Instead, the „SAME AS” definition is preferred. This method ensures better transparency and flexibility of the model, it is easier to use and maintain.

Some of the functionalities we can provide you in the International and Unit Linked libraries:

  • Handling more than only one fund in case of unit linked contracts

  • Modeling overdue payments and arrears

  • Handling the time gap between the occurrence date and reporting date of an insurance event.

  • Analysis of surplus taking into account the company's reporting structure.

  • Analysis of the movements in the Embedded Value