- PathWise successfully prepares Kyobo for IFRS 17, K-ICS regimes and beyond

Aon plc (NYSE: AON), a leading global professional services firm providing a 
broad range of risk, retirement and health solutions, today announces that 
Kyobo Life has successfully implemented its PathWise high performance computing 
platform in preparation for the IFRS 17 and K-ICS financial reporting regimes.

The South Korean life insurance company firm embedded PathWise as its 
all-in-one financial risk management platform to fulfil a range of tasks, 
including assumption management, economic scenario generation (ESG), 
asset-liability management (ALM), hedging, and K-IFRS, IFRS 17, and K-ICS 
reporting – which require a variety of scenarios and shock-based computations 
that demand hundreds of millions of paths of calculations.

In contrast to legacy actuarial systems, PathWise utilizes the parallel 
processing power of graphical processing units (GPUs), which contain thousands 
of processing cores each to simultaneously produce huge volumes of scenarios 
and handle policy-by-policy basis calculations without using approximations or 
shortcuts such as scenario reduction, curve fitting, and policy grouping.

Conversely, legacy actuarial software platforms are often based on central 
processing units and use sequential computations, making them far less able in 
terms of speed and efficiency. 

In approximately five hours, PathWise is able to calculate Kyobo's IFRS 17 best 
estimated liability and risk adjustment for 40 million policies on a 
policy-by-policy basis using 60 GPUs. The entire financial statement generation 
process, including the financial statement movement analysis, can be completed 
in just 36 hours. 

Meanwhile, PathWise can calculate the required capital amount for Kyobo's K-ICS 
QIS 2.0 within 30 hours, with no significant impact on the calculation run-time 
even when the number of scenarios increased from 200 to 1,000.

Kyobo Life's actuarial infrastructure team leader, Kim Yeon Jung, said: 
"Accurately analyzing financial effects and establishing strategies under the 
new regulations requires a lot of computations, and so we needed 
high-performance computing software for such difficult workloads. In addition, 
change management and system control functions for complex models and large 
amounts of data are necessary too. PathWise's high performance ensured the 
necessary speed for computations, along with flexibility and stability for ease 
of management under new regulations such as IFRS 17 and K-ICS."

Peter Phillips, President and CEO of PathWise Solutions Group, said: "Being 
able to perform complex calculations at such speeds offers PathWise clients 
clear efficiency gains, which can translate into real cost savings for their 
businesses. As more companies realize they need to carefully consider their 
approaches to regimes such as IFRS 17 and K-ICS, and also want the benefit of a 
single platform for their financial reporting, PathWise can step-in and help 
them to overcome their challenges."

For further information, please contact: Alexandra Lewis 
(alexandra.lewis@aon.com ) (+44 20 7086 0541 / +44 759 555 2613)

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SOURCE: Aon plc