LDTI Consortium

We provide affordable, best-in-class solutions for our clients.

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Table of Contents

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LDTI Background

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Building Blocks of LDTI

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Expert Team

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How Can The LDTI Consortium Assist You?

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Seamless End-To-End Solution

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RiskIntegrity LDTI

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Data Connectivity Enabling LDTI

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The Solution: InsurHUB for LDTI

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Secure Process

LDTI BACKGROUND

The LDTI Consortium utilizes Moody’s Analytics AXIS™ actuarial system, AXIS US GAAP Link module and RiskIntegrity™ for LDTI solution, and Microsoft Azure to accelerate LDTI compliance.

Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), refers to the Accounting Standards Update (ASU) No. 2018-12, amends existing accounting requirements under US Generally Accepted Accounting Principles (USGAAP) for certain long-duration insurance contracts such as life insurance, annuities, disability income and long-term care. LDTI represents the most significant insurance accounting change in decades and affects actuarial, accounting and IT teams within insurance companies.

Currently the ASU has mandated the following implementation dates:

For SEC filers, excluding smaller reporting companies as defined by the SEC, LDTI is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.

For all other entities, LDTI is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. 

These implementation dates are closely approaching, making significant progress in your LDTI implementation is imperative. 

BUILDING BLOCKS of LDTI

With the LDTI Consortium

  • Actuarial LDTI compliant models
  • Data and IT needs for an end-to-end implementation
  • Program management to ensure an on time and on budget delivery

EXPERT TEAM

The LDTI consortium can help you achieve LDTI compliance. Our Consortium members play three distinct roles and combine our services into a holistic pragmatic solution aimed at meeting our client’s unique transformation journey. 

While many of our clients chose to engage the full Consortium, where a client does not require all three members, we are happy to scale our work appropriately.

The LDTI Consortium utilizes Moody’s Analytics AXIS™ actuarial system, AXIS GAAP Link module and RiskIntegrity™ for LDTI solution, and Microsoft Azure to accelerate LDTI Compliance.

Our roles:

Valani Global

Valani Global

Valani Global (Valani) specializes in supporting insurance companies in achieving their financial risk management goals through a focus on actuarial modeling, financial reporting, and implementations of Moody’s Analytics solutions.

Collectively our team has over 100 years of experience with AXIS, with an emphasis on end-to-end AXIS implementation services. Valani is a powerhouse of AXIS experts who focus exclusively on Moody’s risk management software. Valani Global supports insurance companies in achieving their financial risk management goals through the implementation of Moody’s Analytics solutions, including AXIS and RiskIntegrity for LDTI.

BDO

BDO

With access to a global knowledge base and professional expertise, BDO offers extensive value to our clients across all insurance and financial services industry segments. BDO has established data, analytics, and process automation accelerators, including our InsurHub platform offering enhanced data ingestion, integration, and financial reporting. InsurHub outperforms other industry solutions offering the most pragmatic, cost-effective approaches to addressing the complex data & technology requirements of LDTI.

Optimus SBR

Optimus SBR

One of North America’s largest independently owned management consulting firms with a focus on Financial Services and Insurance Industries. Optimus has extensive experience working with Canadian and Caribbean insurers, helping to drive value and ROI. Optimus also manages implementations, providing cross-functional program management, business architecture, business analysis & requirements creation, accounting and chart of accounts design, business optimization and change management, and critical data and lineage work.

HOW CAN THE LDTI CONSORTIUM ASSIST YOU?

The LDTI Consortium utilizes the Award-Winning Moody’s Analytics RiskIntegrity for LDTI solution

The RiskIntegrity™ for LDTI product is the premier solution to help insurance companies better understand and manage their risk, actuarial, and finance activities.

The RiskIntegrity™ for LDTI solution integrates with actuarial modeling tools and general ledger solutions to deliver a single platform for actuarial analysis, accounting, and reporting.

LDTI requires increased collaboration between actuarial, accounting, and IT teams to coordinate and execute data centralization, valuation and consolidation of actuarial model runs, account postings and reporting and disclosures.

The LDTI Consortium commonly works across these functional areas to develop cohesive execution of cross-functional end-to-end transformations as well as implementing best practices for controls and governance.

Our close collaboration with Moody’s and our deep understanding of the AXIS system and RiskIntegrity solution makes us an efficient partner for the planning and integration of this new software into your overall actuarial process.

SEAMLESS END-TO-END SOLUTION

The RiskIntegrity™ for LDTI solution integrates seamlessly with the AXIS GAAP Link module and the AXIS™ actuarial modeling system. The AXIS GAAP Link module and RiskIntegrity™ for LDTI solution are software recently made available by Moody’s Analytics to translate actuarial model runs to accounting postings.

AXIS Actuarial System

—  Used for valuation, pricing, projection, risk analysis, etc.

—  Will support LDTI

    • Current period reporting
    • All other applications
    • Using existing client models

AXIS GAAP Link

—  New processes for LDTI current period reporting

    • Multiple input files
    • Efficient processing
    • LDTI reporting results

—  Optimal integration with RiskIntegrity LDTI

RiskIntegrity™ LDTI

—  Bridges actuarial models and client G/L

—  Accepts and manages accounting & actuarial data

—  LDTI analysis by cohort

—  Revenue and OCI lines

—  Prepares journals entries

—  Disclosures & analytics

We can assist you in ensuring your current AXIS™ models are enhanced for LDTI and follow best practices in order to fulfill current and future reporting needs in a single place. We also assist in implementing best practices for controls and model governance. We have worked on this with many companies and have a strict methodology that we can share with you.

RISKINTEGRITY LDTI

Flexible & Efficient

The RiskIntegrity™ for LDTI solution works with a wide spectrum of actuarial modeling software. It is not a requirement for actuarial models to use the AXIS™ software. In addition, the RiskIntegrity™ for LDTI solution receives input data from any source and processes it through calculation engines to posts journals in the accounting General Ledger system from the Subledger.

DATA CONNECTIVITY ENABLING LDTI

LDTI DATA & TECHNOLOGY

KEY CHALLENGES

Data & technology requirements associated with LDTI will be a significant challange for many insurers due to cost, complexity, limited IT resources or subject matter expertise – especially where data and systems are disconnected.

THE SOLUTION: INSURHUB FOR LDTI

Helping Insurers Fast-track Their Regulatory Compliance Strategy

BDO’S Insurance Data Integration Hub (InsurHUB) is a set of data management best practices that accelerates the LDTI journey.  Built exclusively on the Microsoft Azure platform, InsurHUB is a cloud-based solution that allows insurers to leverage their existing finance, actuarial, policy, and other corporate systems to securely manage data, business rules, calculations, and processes required to meet LDTI regulatory compliance, while establishing a foundation for Insurance Analytics & AI.

SECURE PROCESS

Enterprise Grade Security Strategy For Data

The RiskIntegrity™ for LDTI solution is operated on Microsoft Azure, a cloud computing service for building, testing, deploying, and managing applications and services through Microsoft-managed data centers. Azure brings a highly secure cloud foundation.

The LDTI Consortium utilizes Moody’s Analytics AXIS™ actuarial system, the AXIS GAAP Link module and RiskIntegrity™ for LDTI Solution, and Microsoft Azure to accelerate LDTI Compliance. Valani Global is a premier implementer of the Moody’s RiskIntegrity™ solutions.

We are Actuarial experts on LDTI and have conducted an SOA LDTI webinar with Prudential and AIG in January 2021.

The LDTI Consortium can perform an assessment of your need for RiskIntegrity™ for LDTI solution as well as a data gap analysis overall end-to-end business architecture and accounting for LDTI to help you understand your compliance journey.

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