Traditional Life

PolySystems traditional life software is a fully integrated financial reporting and modeling solution that supports all major U.S. statutory, tax, and GAAP reserving methodologies. We actively follow potential changes to reserving rules and guidelines (e.g., VM-20 for PBR) to keep our software compliant and ready for new regulations.

Broad Product Support

Broad Product Support

PolySystems traditional life software supports all major traditional life products, including:

  • Term, whole life, interest sensitive whole life, variable whole life, endowment, group ordinary, and deferred maturities
  • Joint life policies (first and second to die)
  • Multiple benefit combination plans
  • Policy loans
  • Rider support for:
    • term coverage
    • benefit increase
    • return of premium
    • supplemental benefits
    • any custom rider for which a benefit and claim cost pattern can be defined
  • Traditional life reinsurance treaties (assumed and ceded)
  • Premium patterns such as level, decreasing, and indeterminate
  • Dividends for participating policies

Processing Highlights

Processing Highlights

Processing capabilities for our traditional life software include:

  • A powerful Source of Earnings tool for analyzing and understanding how and why reserves change historically and prospectively
  • Dividend Generator for analyzing and setting declared dividends
  • Reporting and analysis of historical data for experience analysis
  • First principles calculations for all supported life products
  • Generational mortality tables
  • Attribution analysis to roll forward reserves
  • Sensitivity testing and other ad hoc runs
  • User insertion points to model custom, dynamic policyholder behavior such as lapses, etc.
  • Various intermediate reserve methods
    • Daily
    • Monthly
    • Modal
  • Premium accrual calculations
  • Generates historical and projected cashflows for analysis

Multiple Accounting Methodologies

Multiple Accounting Methodologies

Supported traditional life accounting methodologies include:

Statutory & Tax

  • Full support for VM-20
    • Calculations for net premium, deterministic, and stochastic reserves
    • Exclusion tests for deterministic and stochastic reserves
  • VM-51 processing
  • CRVM (including XXX)
  • NY Regulations 147 and 179
  • International methodologies (e.g., Taiwan and Korea)
  • Zillmer methodology
  • Tax reserves
  • Internal Revenue Code §§ 7702 and 7702A

GAAP

  • FAS 60 (including segmented)
  • FAS 120 for mutual companies
  • Purchase GAAP for VOBA and other intangibles
  • Limited pay deferred profit liability
  • DAC
    • Loss recognition
    • Recoverability testing

Economic

  • Economic reserves for reinsurance, reserve financing, and other applications
  • Economic capital for ORSA, pricing, and other applications

Available Modules

Available Modules

Additional modules can also be run with our Traditional Life software for a variety of actuarial needs.

  • Policy History Management

    Our Horizon Software gathers, edits, manages, and prepares policy inventory data from admin systems or data warehouses.

  • Experience Studies

    Our Measure software automates and productionalizes experience studies using data and assumptions in valuation and projection setups.

  • Source of Earnings

    Our Source of Earnings software measure the sources of a life insurance company’s profits to improve performance.

  • VM-51

    Our VM-51 utility supports Principle-Based Reserving

Find your software solution today!