What is the AXIS Annuity Module used for?
It models annuity products, both fixed and variable, including accumulation and payout phases, policyholder behavior, reinsurance, and guaranteed benefit features.
What are annuities?
Contracts that provide periodic payments to policyholders, often during retirement, in exchange for a premium or investment.
What types of annuities can AXIS model?
Fixed annuities, variable annuities, and indexed annuities, each with their own accumulation and payout structures.
What are policyholder investment account choices?
Options that let policyholders allocate funds to different investment accounts (e.g., fixed interest, equity, or segregated funds).
How does AXIS handle multiple investment account choices?
AXIS models separate fund balances, returns, and fees for each account, combining them for total policy value projections.
Why are multiple reinsurance treaties important in annuity modeling?
They allow insurers to share and manage risks such as longevity, investment performance, or guarantees across multiple reinsurers.
How does AXIS support multiple reinsurance treaties?
AXIS can allocate premiums, reserves, and claims to multiple treaties according to defined terms and limits.
What is policyholder behavior modeling in annuity products?
The simulation of policyholder actions like withdrawals, fund transfers, lapses, or annuitization, based on experience and assumptions.
How does AXIS model policyholder behavior?
AXIS allows dynamic rules for lapses, withdrawals, and annuitization rates that depend on time, fund value, and market conditions.
What is Dynamic Valuation in AXIS?
A modeling approach where valuation assumptions (like lapses or withdrawals) respond dynamically to economic or policy variables.
What are Joint Life policies in annuities?
Annuities that continue payments until both lives (e.g., a couple) have died, often with reduced payments after the first death.
How does AXIS model Joint Life annuities?
AXIS allows joint life survival probabilities, payout reductions, and decrements for two insureds simultaneously.
What phases can fixed annuities be modeled in?
Accumulation phase, payout phase, or a combination of both.
What happens during the accumulation phase?
Premiums accumulate with interest or investment returns until the payout period begins.
What happens during the payout phase?
The policy converts accumulated value into periodic income payments to the policyholder.
What is a Guaranteed Minimum Death Benefit (GMDB)?
A feature that ensures a minimum payout to beneficiaries if the policyholder dies before annuitization, regardless of investment performance.
What is a Guaranteed Minimum Accumulation Benefit (GMAB)?
Guarantees that the policyholder will receive at least a specified account value at the end of an accumulation period.
What is a Guaranteed Minimum Income Benefit (GMIB)?
Ensures that upon annuitization, the policyholder can convert to a minimum guaranteed income level even if investments underperform.
What is a Guaranteed Minimum Withdrawal Benefit (GMWB)?
Allows policyholders to withdraw a minimum amount annually for life, even if their account value drops to zero.
What are Earnings Enhancement Benefits (EEB)?
Bonuses added to death or withdrawal benefits to enhance payouts when investment earnings exceed certain thresholds.
What are Canadian Segregated Fund guarantees?
Guarantees similar to variable annuity benefits offered in Canada, such as minimum maturity or death benefits tied to segregated funds.
What is an Equity (Fixed) Indexed Annuity?
An annuity where returns are linked to an equity index (e.g., S&P 500) but with downside protection and a guaranteed minimum rate.
How does AXIS model Equity Indexed Annuities?
AXIS tracks index-linked returns, guarantees, participation rates, and caps while applying floor rates for minimum credited interest.
Why is the AXIS Annuity Module comprehensive?
It models all key annuity features—fixed, variable, indexed, guarantees, behavior, reinsurance, and both accumulation and payout phases.
