Towers Watson Announces General Availability of New MoSes Financial Modeling Solutions for U.S. Life Insurers

To help insurers better respond to market volatility and new statutory principle-based approaches (PBA) to regulatory requirements such as AG 43 and C3 Phase III, global professional services company Towers Watson (NYSE, NASDAQ: TW) announced the general availability of a new suite of advanced financial modeling software.

Towers Watson's MoSes U.S. Life Modeling Suite includes new applications for modeling variable annuity and universal life products with structural improvements that significantly lower run time and memory usage over prior MoSes applications. These models calculate point-in-time and projected values on a statutory and GAAP basis using dynamic, on-the-fly calculation techniques.

"Demands on life insurers and annuity writers to measure risk more accurately are growing," said Todd Erkis, Towers Watson's global life software product manager. "As a result, financial models viewed as highly sophisticated just a few years ago are now considered inadequate. Our new MoSes U.S. Life Modeling Suite applications represent a significant leap forward in actuarial modeling and software programming techniques to deliver results that were formerly considered unobtainable in practical terms."

The suite also supports nested stochastic structures with inner-loop asset/liability interactions, providing greater modeling accuracy than more simplified approaches where assets are not modeled. These applications use advanced software programming techniques to make optimal use of grid computing for faster results.

More information about the MoSes U.S. Life Modeling Suite is available online at http://www.towerswatson.com/uslms Note to editors: The purpose of AG 43 (Actuarial Guideline 43) is to interpret the standards for the valuation of reserves for variable annuity and other contracts involving certain guaranteed benefits similar to those offered with variable annuities. The Guideline codifies the basic interpretation of the Commissioners Annuity Reserve Valuation Method (CARVM) by clarifying the assumptions and methodologies that will comply with the intent of the Standard Valuation Law (SVL). It also applies similar assumptions and methodologies to contracts that contain characteristics similar to those described in the scope, but that are not directly subject to CARVM. AG 43 became effective on December 31, 2009. C3 Phase III is a proposed principle-based approach that will be used for determining the interest rate and market risk component (C3 component) in the risk-based capital minimum capital requirement for life products in the U.S. C3 Phase III is currently in draft form and is being considered by the National Association of Insurance Commissioners (NAIC) for adoption at the end of 2011. Principle-based approaches (PBA) to calculating reserves and risk-based capital requirements are replacing long-standing formulaic approaches. The goal of PBA is to more accurately capture the underlying risks in contracts using economic analysis that reflects product designs and the risk profile of the issuer. About Towers Watson Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at www.towerswatson.com.