Willis Towers Watson launches new platform to drive ‘superior’ investment returns

Willis Towers Watson has launched a strategic asset allocation software for insurers and wealth managers that it says will cut through the complexity to drive better risk management and investment returns.

The cloud-based platform, called Optimum SAA, will help companies better understand their current asset allocation position and to determine the optimised asset allocation within set constraints.

According to WTW, many organisations struggle to find an appropriate strategic asset allocation system. Common issues include unstable optimisation techniques that are not fit for purpose; bespoke IT systems that are expensive, inflexible and don’t meet regulatory requirements; poor assumptions from calibrations that lack robustness; and poor interpretability of model outputs due to improper KPIs.

The company said its insurance investments team has designed the platform to enable chief investment officers, chief financial officers and risk managers to overcome these challenges using superior modelling and stable optimisation techniques.

WTW cited some of its key features as stochastic modelling, reduced risk of unstable optimisation, intuitive client interface, and its ability to model measures related to decumulation and sustainability, as well as report on Solvency II Standard Formula SCR and liquidity metrics.

Ash Belur (pictured), director at Willis Towers Watson, said: “Investment professionals want to develop robust strategic asset allocations to meet their specific needs and to optimise investment returns and manage risks. Optimum SAA cuts through the complexity of strategic asset allocation to produce optimised and practical investment portfolios that reflect a company’s constraints, objectives and risk appetite.”

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