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PFaroe’s cross-balance capabilities allow for a fully-integrated conversation between the actuary, the investment advisor, the investment manager, and the plan sponsor. This is to the direct and obvious benefit of the end plan. PFaroe can allow for access to be shared between multiple parties, so that decisions can be made on the same basis.
The unique and flexible way in which PFaroe models both liabilities and assets enables actuaries to involve other third parties in modeling and providing additional value. For example, insurers can input pricing assumptions directly into PFaroe to improve the buyout/buy-in indicative pricing process. Asset managers can also model up their own asset benchmarks held by pension plans through PFaroe providing more credible asset and risk metrics.
Being part of a network of PFaroe users is a compelling proposition for the pensions industry – allowing for better collaboration on a common technology platform between historically disparate advisors and institutions. The improved transparency across stakeholders delivered through the use of PFaroe provides an optimal decision-making framework.
PFaroe is a holistic platform that meets all actuarial valuation, forecasting and analytical requirements, with high-quality, consistent and cost-effective analytics. Automating standard services, such as formal actuarial valuations, roll-forwards and projection analyses, allows an actuary to perform tasks more quickly – allowing greater focus on value-added consulting rather than number-crunching. Improve targeting of performance within an agreed risk framework
PFaroe offers the flexibility for actuaries to model the appropriate plan data for the intended purpose. Where results need to be detailed and accurate, such as for valuation purposes, liabilities can be modeled at a member level through PFaroe’s market-leading actuarial valuation system. Alternatively, for new business pitches, plans can be set up quickly using cashflow or present value information. PFaroe also provides flexibility for asset modeling. Assets can be mapped speedily to the extensive suite of PFaroe asset benchmarks, or actuaries can model bespoke ‘funds’ to use alongside these.
As cost-cutting and commoditization of actuarial projects continues in the pensions industry, actuaries need to constantly evolve how they deliver dynamic solutions to their clients. PFaroe excels in this respect. Not only can it perform standard plan analysis comprehensively and at high speed, it also allows for dynamic integration with investment policy using cutting-edge risk management techniques. PFaroe packages this in a client-friendly and illustrative web-based tool, which can be used in boardroom meetings, one-on-one with the CFO, and with all other key stakeholders. Access can even be provided directly to the end client to perform their own analysis.
PFaroe empowers actuarial consultants to engage with clients more interactively than ever before, providing on-demand, desktop analysis of funding and risk positions. Comprehensive ‘What if?’ functionality allows discussions and scenario testing to occur in real-time.
PFaroe makes complicated concepts and analytics intuitive, leading to more informed clients that are engaged in the decision-making process. And when clients are engaged in the decision-making process, they are likely to be more open to value-added activities. Providing clients with direct access to PFaroe can help consultants build even stronger relationships.
For smaller actuarial firms without the budgets or internal technology departments of the major providers, it is often challenging to compete against the tools and solutions provided. PFaroe offers cost-competitive access to superior technology, increasing client retention and new business opportunities.
PFaroe assists consultants in bridging the gap between actuarial and investment advice, driving cross-sell opportunities into other advisory projects. In many markets, actuaries cannot offer direct investment advice. However, PFaroe allows them to illustrate actuarial concepts with greater cross-balance sheet awareness, naturally engaging clients in holistic pension risk management. Speed up the Board reporting cycle
Moreover, PFaroe assets and liabilities are automatically updated daily; driving regular dialogue with clients on de-risking opportunities, and allowing opportunities created by market movements to be seized at the right time. This can be especially critical if the plan is considering a major pension transaction, such as an insurance buy-out or a lump sum window.
Finally, PFaroe facilitates alignment to the tenets of US ASOP 51 (on pension risk disclosure) and UK IRM – in respect of both risk identification and the assessments.
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