Our extensively parameterised, flexible and comprehensive calculation engine forms the heart of all our software solutions. Rigorously tested by ourselves and our clients, the calculation engine is designed to service multiple uses and multiple clients whilst benefiting from a shared maintenance and support model.
The calculation engine is designed to project an investment between any two points in time whilst taking into account financial events that may occur during the period of calculation.
For a pension new business illustration, the start and end points of the projection may be the payment of a contribution and the purchase of an annuity at retirement. For a pension investor considering increasing their level of withdrawals in income drawdown, the start point may be a pension policy with a mixture of uncrystallised and crystallised funds with existing income limits, and we may be considering an immediate crystallisation, with future changes in income requirements, with a final annuity conversion some time later. The same engine performs all of these calculations based on the instructions it is given.
Similarly for a non-pension new business illustration, our start and end points may be the payment of a contribution and a defined term but the same principles apply.
The engine is highly configurable and extensively parameterised. Product Details can be maintained in separate reference files, as can fund records and illustration bases. Once set up, the same reference files and the same instance of the calculator can be used for all illustrations. Alternatively such records can be accessed via web services if they exist or be passed into the calculator via the initial messaging.
The calculator can run multiple projections, for many investors and many investments, but it expects to be given full details about existing investments. Start positions can be recorded and stored but, whether provided manually or electronically, it is assumed that other systems will be responsible for the maintenance and updating of policy details.
Ongoing, the calculator models the progression of the policy as accurately as possible, taking account of incoming and outgoing monies, charges, conversions and the growth of underlying funds, all following regulated rules.
