By integrating financial engineering with actuarial science on a high level, we provide sophisticated risk management solutions and support product development regarding life insurance and pensions not only for Dai-ichi Mutual Life Insurance Group but also for other life insurance companies.
Life insurance companies make investments in a wide range of products, i.e.not only such products as stocks, bonds and real estates in domestic and international markets as traditional investment objects, but also alternative products.
While new investment products have been developed one after another, such as Mortgage-Backed Securities ("MBS") and CDOs in the financial markets. We develop analytical tools in a quantitative way to support investment in those products.
In addition, we provide investment advisory service to institutional investors.
Since liabilities of life insurance companies and of pension funds carry complex and long-term nature, Asset Liability Management (ALM) is quite imperative. We conduct a research and develop sophisticated ALM simulators to construct optimal portfolio structure and to analyze risks inherent in those liabilities.
Life insurance companies and pension funds need to manage a wide range of risks, such as market risk, credit risk, operational risk, and underwriting risk. Currently in this juncture, IAIS (International Association of Insurance Supervisors) studies risk management framework on an international scale. We conduct research on the enterprise risk management (ERM) framework that is capable of encompass those risks.
Life insurance companies have actively developed new saving products, such as variable annuities and fixed annuities, making use of actuarial science and modern financial theory. We support their new product development by offering consultation on risk management methodologies or on hedging strategy.
We conduct research on various themes, such as securitization of life insurance, fair valuation models of insurance liabilities and models of mortality with the cooperation of academia.
