Life Risk Modeling Suite
PathWise: The Engine of Aon’s Life Risk Modeling Suite
Life and annuity re/insurers face rising modeling complexity, tighter regulations, and growing demands for faster, deeper insight. Aon’s Life Risk Modeling Suite, powered by PathWise, gives actuarial and finance teams the speed, transparency and control they need to manage risk and capital with confidence.
PathWise is Aon’s high‑performance platform for life and annuity risk modeling. It combines an intuitive, Excel‑like modeling environment with a powerful, GPU‑native engine so that actuarial teams can run complex, policy‑level projections in minutes instead of hours or days.
As the core of Aon’s Life Risk Modeling Suite, PathWise helps insurers:
- Scale their modeling – Run large‑scale stochastic and nested simulations on millions of contracts with dramatically reduced runtimes and cloud costs.
- Model complex products – Capture intricate features, guarantees, options and management actions without sacrificing performance or governance.
- Increase transparency – Give actuaries, model governance teams, and auditors clear visibility into assumptions, methods, and model logic.
- Benefit from next-generation ALM – Integrate PathWise’s native asset models, including complex derivatives, structured, and private asset classes, alongside robust and intuitive ALM, hedging, and ESG logic, to capture massive capital efficiency and regulatory reserving opportunities not available in legacy tools
- Integrate end‑to‑end – With rich API and Python features, connect with upstream data sources and downstream finance and risk systems as part of a modern actuarial operating model.
Consolidating on PathWise as your core modeling engine enables you to modernize legacy actuarial environments, support IFRS 17, US GAAP, BMA, and other international regulatory requirements, and build a resilient, future‑ready life risk modeling capability.
Why High-Performance Modeling Matters to Life and Annuity Re/insurers
Life and annuity re/insurers must:
- Balance growth, risk and capital while margins remain under pressure
- Meet demanding regulatory and financial reporting standards such as IFRS 17, US GAAP, Bermuda, and comprehensive international and local capital regimes
- Support sophisticated pricing, hedging, and asset‑liability management (ALM) decisions
- Deliver reliable projections and valuations at scale and on tight timelines
These demands put immense strain on traditional actuarial modeling software and processes. Common challenges include:
- Heavy computational workloads – Thousands of scenarios, stresses and sensitivities require high‑performance computing.
- Intensive data needs – Detailed, policy‑level data must be processed, stored and analyzed efficiently.
- Manual, error‑prone workflows – Spreadsheets and hand‑offs slow down production and increase operational risk.
- Opaque “black box” models – Limited visibility into assumptions and logic complicates validation, governance and audit.
A modern, enterprise‑grade actuarial modeling solution is now essential for organizations that want their actuarial and finance functions to be strategic partners, not just reporting engines.
Capability Overview
Strategy and Technology Group
How Aon’s Life Risk Modeling Suite Helps
PathWise is an integrated enterprise solution that supports:
- Pricing and product development
- Financial projections and scenario testing
- Valuation and financial reporting
- Hedging, ALM, ESG, and capital management
PathWise is a GPU‑native, high‑performance modeling platform that combines speed, flexibility and transparency. PathWise combines a rich modeling ecosystem with data, process, and governance capabilities to accelerate model runs, automate critical workflows, and strengthen control across your actuarial landscape.
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Key Capabilities
- High‑performance modeling
- Actuary‑friendly modeling studio with familiar, Excel‑style logic
- Integrated Python, REST API, and next-generation AI toolkits
- GPU‑powered engine to run large‑scale, policy‑level models in minutes rather than hours or days
- Support for complex life and annuity products, nested simulations and advanced risk analytics
- Support for an entire modeling ecosystem including liabilities, assets, ALM, ESG, hedging, and comprehensive regulatory reporting
With PathWise at the core, teams can iterate faster, test more scenarios and respond quickly to changing market and regulatory requirements.
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Out‑of‑the‑Box Libraries and Regulatory Support
- Standardized libraries for all life and annuity products and asset classes
- Robust ALM and hedging logic, including nested workflows
- Pre‑built components aligned with all major regulatory and reporting frameworks
- AI-integrated workflows to help stand up your models faster, minimize time on reconciliation and documentation, and enhance your production and reporting capabilities
- Content maintained by Aon to help reduce implementation timelines and ongoing maintenance
These libraries help re/insurers move quickly from initial design to production while maintaining consistency and control.
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Integrated Data Warehouse
- Purpose‑built data warehouse optimized for high‑volume model input and output
- Efficient read/write performance for granular, policy‑level data
- Centralized, structured data environment to support analytics, reporting and reuse of model results
This foundation enables more robust analysis and easier sharing of insights across the organization.
- Extract, Transform and Load (ETL) tools, enriched with standard Python scripts and workflows. Work with your current data formats.
- Flexible, scriptable processes tailored to your existing data landscape
- Support for a full, end‑to‑end data pipeline connecting upstream and downstream systems
- The ETL framework standardizes data preparation and reduces reliance on ad‑hoc spreadsheets and manual data handling.
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Economic Scenario Generation (ESG)
- Real‑world and risk‑neutral economic scenario generation on demand
- Support for advanced scenarios to inform pricing, hedging, ALM and capital planning
- Supporting calibration services available through PathWise’s ESG consulting teams
- Seamless integration with PathWise‑based models for consistent, traceable assumptions
- On‑the‑fly scenario generation enables teams to explore a wide range of future paths and understand the impact on liabilities, capital and earnings.
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Process Orchestration and Automation
- Workflow tools to design end‑to‑end, “single‑click” production runs
- Alerts, triggers, and approval steps embedded into key processes
- Scheduling and orchestration of complex jobs across teams and locations
- Automation lowers operational risk, shortens cycle times, and frees specialists to focus on analysis and decision‑making.
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Ad‑Hoc Analytics Environment
- Integrated Python‑based analytics environment connected directly to model outputs
- Tools for exploratory analysis, custom dashboards, and innovation projects
- Empowering actuarial, risk, and finance teams to test ideas without disrupting production runs
- This environment supports a culture of experimentation and continuous improvement, driven by PathWise actuarial software outputs.
- AI-driven co-pilots to accelerate modeling time and reduce the technical barriers
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Production Control and Monitoring
- Central view of production runs, job status, and dependencies
- Tools to manage reruns, exceptions, and recovery when issues arise
- Dashboards and reports to monitor throughput, performance, and service levels
- Improved production control gives leaders confidence in critical actuarial and risk processes and the numbers provided to the business
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Governance and Audit Readiness
- Version control for models, assumptions, and code
- Branching and merging to manage parallel development and releases
- Roles‑based access, permissions, and audit trails for key actions
- PathWise is designed to eliminate “black box” concerns, making every assumption and logic step transparent, documented and auditable
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Flexible Support and Deployment Options
- Multiple service models, from self‑service to fully-Aon-managed environments
- Deployment approaches tailored to different team sizes, geographies, and organizational structures
- Access to Aon specialists who understand both PathWise and the broader actuarial context
- You can adopt PathWise in a way that aligns with your internal capabilities, governance needs and strategic priorities
Performance in Numbers
The scalable cloud architecture behind PathWise actuarial software is built to significantly reduce runtime and infrastructure requirements. Insurers using Aon’s Life Risk Modeling Suite have achieved:
- Model runs up to 1000x faster than legacy actuarial systems
- Cloud computation costs up to 100x lower for large stochastic and nested projections
- The ability to run tens of millions of model points in ALM models without memory or speed bottlenecks
These performance gains help reduce cost, speed up financial close processes and give teams more time for value‑added analysis.
Speed, Flexibility, and Complexity – Without Trade‑Offs
Traditional actuarial modeling environments often force teams to make tradeoffs between:
- Speed
- Modeling flexibility
- Complexity and richness of behavior
Many legacy actuarial platforms and in‑house tools (including spreadsheet‑driven and custom code approaches) struggle to deliver all three at once. PathWise breaks this compromise.
Talk to Our Team
To explore how Aon’s Life Risk Modeling Suite and PathWise can transform your actuarial modeling, reporting, and risk management:
- Share your current challenges with actuarial software and modeling processes
- See how GPU‑native platform can change your timelines and cost profile
- Map a phased transition from legacy systems to a modern, automated platform
Contact us to schedule a conversation with specialists from Aon’s Strategy and Technology Group and Life Solutions team.
