Liability modelling speeds boosted by computer games technology

As insurers look for ways to improve the speed of their modelling calculations, some are turning to microprocessors originally developed for computer graphics in games consoles to increase calculation times. But while graphical processing units can achieve huge performance increases, some argue there are more cost-effective ways of improving processing speeds. Clive Davidson reports

Today's insurers face many computational challenges, as products become more complex, markets more volatile and regulations more onerous. Valuing portfolios - especially of complex products such as variable annuities (VAs) - as well as measuring risks, calculating reserves and capital, and devising hedges, can stretch conventional technology. Performing these tasks intra-day, as many companies now wish to do, can prove impossible without a radical review of technology infrastructure.

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