Top 10 Actuarial Modeling Software: Features, Pros, Cons & Comparison

Introduction

Actuarial modeling software consists of specialized platforms designed to perform complex mathematical and statistical calculations to assess risk, price insurance policies, and determine the reserves needed to remain solvent. These tools translate raw data—mortality rates, interest rate fluctuations, and claim histories—into financial projections that span decades. By providing a controlled environment for stochastic and deterministic modeling, these solutions allow companies to visualize their “best-estimate” liabilities and the impact of tail-risk events.

The importance of these tools lies in their ability to offer automated audit trails, high-performance computing (HPC), and standardized libraries. Key real-world use cases include asset-liability management (ALM), capital adequacy testing, product pricing, and regulatory reporting. When evaluating these tools, users should prioritize calculation speed (scalability), model transparency (open code vs. black box), ease of integration with data warehouses, and the breadth of the vendor’s pre-built actuarial libraries.

Best for: Actuaries, risk managers, and financial analysts within life insurance, property and casualty (P&C) insurance, reinsurance, and pension consulting firms. It is vital for mid-to-large enterprises that must comply with rigorous international regulatory standards.

Not ideal for: Personal financial planning, very small independent consulting projects that do not involve regulatory oversight, or general accounting tasks that do not require risk-based projections. For simple mortality calculations, basic statistical packages or Excel may suffice.

Top 10 Actuarial Modeling Software Tools

1 — FIS Prophet

FIS Prophet is arguably the most widely used actuarial modeling suite in the world, particularly within the life insurance sector. It provides an enterprise-wide platform that manages everything from data preparation to final financial reporting.

• Key features:
  • Prophet Professional for model development and Prophet Enterprise for high-volume production.
  • Extensive libraries for life, health, and pension business.
  • Nested stochastic capabilities for complex capital modeling.
  • Prophet Managed Cloud Services for massive scalability during peak periods.
  • GIA (General Insurance Analyzer) for P&C modeling.
  • Integrated data management and governance workflows.
• Pros:
  • Industry-standard libraries reduce the time needed to build models from scratch.
  • Unrivaled scalability with support for distributed grid computing.
• Cons:
  • Can be significantly more expensive than smaller, niche competitors.
  • The user interface can feel complex and requires substantial training for new users.
• Security & compliance: SOC 2 Type II, GDPR, and ISO 27001. Features strong audit logs, role-based access, and data encryption.
• Support & community: World-class enterprise support; a massive global community of certified Prophet actuaries and extensive technical documentation.

2 — Moody’s AXIS

Moody’s AXIS is a dominant force in the North American market, known for its “all-in-one” approach. It integrates pricing, reserving, ALM, and capital modeling into a single, unified system.

• Key features:
  • A single system design that ensures data consistency across all actuarial functions.
  • Cloud-based AXIS Enterprise for large-scale production runs.
  • Pre-built modules for Life, Annuity, and Disability products.
  • Automated IFRS 17 and LDTI reporting structures.
  • High-speed calculation engine that minimizes data movement.
  • Rigorous version control and model governance.
• Pros:
  • Excellent speed to market due to highly standardized, pre-built models.
  • Ease of use; the “module-based” approach is more intuitive for many users than open-code systems.
• Cons:
  • Less “open” than some competitors; customizing the core code can be restrictive.
  • Primarily focused on North American and Asian life insurance markets.
• Security & compliance: SOC 2, HIPAA (where applicable), and GDPR. Offers SSO integration and multi-factor authentication.
• Support & community: Strong customer success teams; regular user conferences and a deep knowledge base.

3 — WTW RiskAgility FM

Willis Towers Watson’s RiskAgility FM is a highly flexible, open-code modeling platform built on modern .NET technology. It is designed for life insurers who need full transparency and customization.

• Key features:
  • Built on the .NET framework, allowing for flexible coding and integration.
  • High-performance computing via RiskAgility FM Grid.
  • Integrated with WTW’s Unify for automated end-to-end processing.
  • Support for global regulatory regimes including Solvency II and IFRS 17.
  • Open-code libraries that allow actuaries to see and edit every formula.
  • Version control integrated with standard IT software development tools.
• Pros:
  • Extreme flexibility; ideal for bespoke products that don’t fit into “canned” models.
  • Strong integration with Microsoft Azure for elastic cloud computing.
• Cons:
  • Requires actuaries to have a higher level of coding proficiency.
  • The “blank slate” potential can lead to longer initial setup times.
• Security & compliance: ISO 27001, SOC 2, and GDPR. Includes detailed audit trails of formula changes.
• Support & community: Backed by WTW’s extensive global consulting practice; excellent professional services for implementation.

4 — Milliman MG-ALFA

MG-ALFA is Milliman’s flagship projection system, renowned for its technical depth and ability to handle complex asset and liability interactions.

• Key features:
  • Advanced ALM capabilities including support for derivatives and complex assets.
  • Global life and annuity library support.
  • Grid computing and cloud integration for massive stochastic runs.
  • Integrated with Milliman Integrate for broader data and risk management.
  • Highly granular reporting for internal management and regulatory bodies.
  • Strong focus on economic capital and hedging strategies.
• Pros:
  • Technical accuracy and depth are considered top-tier by industry experts.
  • Excellent for companies with complex investment strategies and hedging programs.
• Cons:
  • The learning curve is steep for non-Milliman trained staff.
  • Reporting modules can be less flexible than newer, BI-integrated tools.
• Security & compliance: SOC 2 Type II and GDPR. Data centers are Tier 3/4 with high redundancy.
• Support & community: Access to Milliman’s leading actuarial consultants; robust technical support and training programs.

5 — WTW ResQ

While WTW has many tools, ResQ is specifically the global standard for property and casualty (P&C) loss reserving. It streamlines the data-heavy task of monitoring claims and setting reserves.

• Key features:
  • Standardized methods for chain ladder, Bornhuetter-Ferguson, and others.
  • Advanced statistical modeling for tail-risk analysis.
  • Automated data loading and validation.
  • Full auditability of every change made to the reserving assumptions.
  • Integration with RiskAgility FM and Igloo for capital modeling.
  • Multi-currency and multi-region reporting.
• Pros:
  • The gold standard for P&C reserving; trusted by auditors worldwide.
  • Significant time savings compared to manual, spreadsheet-based reserving.
• Cons:
  • Narrowly focused on reserving; not a general-purpose modeling tool.
  • Requires separate WTW tools for full capital management.
• Security & compliance: SOC 2, ISO 27001, and GDPR compliant.
• Support & community: Very large P&C user base; regular updates and localized support worldwide.

6 — RNA Analytics (R³S)

R³S is an end-to-end actuarial and risk management suite that evolved from the former SunGard (iWorks) Prophet team. It offers a fresh, modern approach to global modeling needs.

• Key features:
  • R³S Modeler for life, non-life, and pension modeling.
  • R³S Process Manager for workflow automation and governance.
  • Native support for Solvency II, IFRS 17, and K-ICS (Korea).
  • Cloud-enabled for high-performance computing.
  • Open and transparent calculation engine.
  • Flexible reporting that integrates with third-party BI tools.
• Pros:
  • Offers a very modern, user-friendly interface compared to legacy systems.
  • Strong focus on the Asian and European regulatory landscapes.
• Cons:
  • Smaller community and consultant ecosystem than FIS or WTW.
  • May lack some of the deepest asset-side modules found in Milliman.
• Security & compliance: ISO 27001, GDPR, and SOC 2.
• Support & community: High-quality, localized support; growing community and proactive product development.

7 — Coherent Spark

Coherent Spark is a disruptive tool that takes a different approach: it allows actuaries to keep their logic in Excel but “sparks” it into high-performance, API-ready code.

• Key features:
  • Converts complex Excel models into C++ or other high-speed code instantly.
  • Automatic versioning and audit trails for every spreadsheet upload.
  • Seamless API generation for integration with digital sales channels.
  • Support for massive parallel processing of Excel-based logic.
  • Governance and security wrap for traditionally “risky” spreadsheets.
  • Real-time testing and validation of model outputs.
• Pros:
  • Zero learning curve for actuaries who already know Excel.
  • Extremely fast deployment for product pricing and digital distribution.
• Cons:
  • Not a standalone “reserving” or “ALM” library; you must build the logic first.
  • Doesn’t provide the standardized actuarial libraries found in FIS or Moody’s.
• Security & compliance: SOC 2 Type II, ISO 27001, HIPAA, and GDPR.
• Support & community: Modern SaaS support model with quick response times; focused on innovation and agility.

8 — WTW Igloo

Igloo is WTW’s premier tool for P&C capital modeling. It is designed to help insurers understand their risk profile and optimize their capital allocation.

• Key features:
  • Highly flexible environment for internal model development.
  • Extensive library of P&C risk components.
  • Super-fast calculation speeds via distributed computing.
  • Integrated with WTW’s broader suite for data management.
  • Advanced visualizations for risk correlation and capital impact.
  • Support for Solvency II internal model requirements.
• Pros:
  • Market leader for P&C capital modeling; excellent for “what-if” analysis.
  • Allows for extremely granular modeling of insurance risk.
• Cons:
  • Can be technical and requires specialized “Igloo” expertise.
  • Pricing is aimed at large, sophisticated P&C insurers.
• Security & compliance: ISO 27001 and GDPR compliant.
• Support & community: Strong UK and European user base; backed by WTW consulting.

9 — Moody’s RiskIntegrity

RiskIntegrity is specifically designed to handle the “last mile” of regulatory reporting, particularly for IFRS 17 and Solvency II.

• Key features:
  • Purpose-built for IFRS 17, managing the CSM (Contractual Service Margin).
  • Seamless data ingestion from various actuarial modeling systems.
  • Detailed accounting ledger and sub-ledger integration.
  • Automated disclosures and regulatory report generation.
  • Strong governance and workflow management.
  • Available as a cloud SaaS or on-premise installation.
• Pros:
  • Excellent for organizations using multiple modeling tools that need a unified reporting layer.
  • Specifically designed for the accounting/actuarial intersection.
• Cons:
  • Not a “modeling” tool in the sense of building mortality curves; it is a reporting engine.
  • Requires a source of projections (like AXIS or Prophet) to be useful.
• Security & compliance: SOC 1/2, GDPR, and ISO 27001.
• Support & community: Highly specialized support for regulatory compliance issues.

10 — Aon Tyche

Tyche is a high-performance modeling platform known for its extreme speed, achieved through innovative use of GPU (Graphics Processing Unit) computing.

• Key features:
  • Native GPU calculation support, allowing for speeds significantly faster than traditional CPUs.
  • Unified platform for pricing, reserving, and capital modeling.
  • Highly flexible, open-code environment.
  • Real-time interactive modeling capabilities.
  • Integration with Aon’s broader risk consulting services.
  • Cloud-native architecture.
• Pros:
  • Likely the fastest calculation engine on the market for certain workloads.
  • Allows for real-time decision-making during pricing negotiations.
• Cons:
  • Requires specific hardware (GPUs) to reach its full potential.
  • Relatively newer compared to the legacy dominance of FIS and WTW.
• Security & compliance: ISO 27001 and GDPR.
• Support & community: Rapidly growing user base; backed by Aon’s global expertise.

Comparison Table

Evaluation & Scoring of Actuarial Modeling Software

To help you make an informed choice, we have evaluated the software category based on a weighted rubric that reflects the priorities of modern actuarial departments.

Which Actuarial Modeling Software Tool Is Right for You?

The decision-making process for actuarial software is rarely about finding the “best” tool in a vacuum, but rather finding the best fit for your specific business line and IT landscape.

Solo Users vs. SMBs vs. Enterprises

• Solo/Consultants: If you are a solo consultant, Coherent Spark or RiskAgility FM offer the most flexibility without locking you into a massive enterprise contract.
• SMBs: Smaller insurers often prefer Moody’s AXIS for its “out of the box” functionality, which reduces the need for a large in-house development team.
• Enterprises: Large, global life insurers almost universally look toward FIS Prophet or Milliman MG-ALFA due to their proven ability to handle massive data volumes and global regulatory needs.

Budget-Conscious vs. Premium

• Budget-Conscious: While no actuarial software is “cheap,” RNA Analytics and Coherent Spark often offer more modular pricing that can be easier for smaller budgets to digest.
• Premium: FIS Prophet and Icertis/WTW suites represent the premium end of the market, where you pay for the peace of mind of industry-standard compliance and massive scalability.

Feature Depth vs. Ease of Use

If your primary goal is speed to market for new products, Coherent Spark or AXIS are superior. However, if you are performing deep research into hedging or complex ALM, the technical depth of MG-ALFA is generally preferred.

Frequently Asked Questions (FAQs)

1. Why can’t I just use Excel for actuarial modeling?

While Excel is flexible, it lacks the governance, version control, and calculation speed required for regulatory compliance. Spreadsheets are prone to manual errors that can lead to multi-million dollar reserving mistakes.

2. What is the impact of IFRS 17 on actuarial software?

IFRS 17 requires much more granular data and complex “Contractual Service Margin” (CSM) calculations. This has forced many insurers to upgrade to tools like Moody’s RiskIntegrity or FIS Prophet to handle the increased reporting burden.

3. Is cloud-based modeling secure?

Yes. Modern vendors use encrypted data centers with SOC 2 Type II and ISO 27001 certifications. Cloud modeling also offers “burst” capacity, allowing you to use 1,000 servers for one hour rather than owning 1,000 servers year-round.

4. How long does it take to implement a new actuarial tool?

A full enterprise implementation can take 6 to 18 months. This includes data mapping, model validation, and parallel running to ensure the new tool matches the old tool’s results.

5. What is “open code” in actuarial modeling?

Open-code tools (like RiskAgility FM) allow the actuary to see and edit the underlying math. “Closed” or “Black Box” tools (like AXIS) provide standardized formulas that can be configured but not fundamentally altered.

6. Do these tools handle P&C and Life insurance equally?

Generally, no. Most tools specialize. Prophet and AXIS are Life-heavy, while ResQ and Igloo are the leaders for P&C.

7. What coding languages are useful for actuaries today?

While many tools have their own syntax, knowledge of C++, C#, Python, and SQL is increasingly valuable for customizing modern platforms like RiskAgility FM or Tyche.

8. Can these tools help with ESG (Environmental, Social, and Governance) risk?

Yes. Many vendors are now adding “climate risk” modules that allow insurers to model the impact of global warming on claim frequencies and asset values.

9. What is stochastic vs. deterministic modeling?

Deterministic modeling uses a single set of assumptions. Stochastic modeling runs thousands of random “trials” (e.g., 10,000 different interest rate paths) to determine the probability of different outcomes.

10. How often should a company review its actuarial software?

Typically every 5 to 7 years. As technology (like GPU computing) and regulations evolve, older systems can become a bottleneck to business efficiency.

Conclusion

The evolution of actuarial modeling software has moved the profession away from data entry and toward high-level risk analysis. Whether you choose the massive computational power of FIS Prophet, the standardized ease of Moody’s AXIS, or the disruptive speed of Coherent Spark, the core objective remains the same: accuracy, transparency, and reliability. The “best” tool is ultimately the one that aligns with your specific regulatory needs and allows your actuaries to spend less time troubleshooting code and more time interpreting the future.