CORDIS
EU research results

CORDIS

English EN
Modelling and software prototyping for asset-liability management applied to pension funds

Modelling and software prototyping for asset-liability management applied to pension funds

Objective

The topic of the project is the in-depth analysis and investigation of Asset and Liability Management (ALM) models in the Pension Funds sector, in order to make them a widespread and reliable tool, as ALM is a recognized essential strategy designed to correctly manage these type of financial products.
The project purpose is twofold: to strengthen the ALM models proficiency addressed principally to Pension funds as well as to build a software solution prototype, which permits to process and administer premium strategies. In this perspective, a new frontier has opened, furthermore influenced by social changes occurring through the European territory. Strong welfare policies adopted by many EU Members and the continuous raising trend of the average age of people have both led to the rapid growth of Pension funds, which embodies the vanguard of a huge but inexorable metamorphosis of the pension planning in the majority of European countries.
The rapid growth of this particular financial market segment has propelled a sudden besides quite unforeseen crisis in several countries, referable to the fact that investments management strategies have frequently been exclusively driven by past or expected returns on assets, with no allow for an adequate liabilities control.
Thereby liabilities become the leading pension plans management benchmark, whereas the solitary research for returns might drive to the incapacity for balancing those obligations. EU Solvency II rules will considerably influence the risk management of insurance companies and pension funds. Its objective is similar to the Basel II system for banks - to implement a solvency model that is better adapted to the true risks and liabilities of pension systems and enables supervisors to protect policyholders' interests as effectively as possible. A further objective is the increase in risk transparency for the supervisors as well as for the public in the EU.

Leaflet | Map data © OpenStreetMap contributors, Credit: EC-GISCO, © EuroGeographics for the administrative boundaries

Coordinator

INFORM SRL

Address

Via Savelli 56
Padova

Italy

Administrative Contact

Stefano ZONIN (Dr)

Participants (1)

Sort alphabetically

Expand all

FRAUNHOFER-GESELLSCHAFT ZUR FÖRDERUNG DER ANGEWANDTEN FORSCHUNG E.V.

Germany

Project information

Grant agreement ID: 42469

  • Start date

    1 November 2006

  • End date

    30 April 2008

Funded under:

FP6-MOBILITY

Coordinated by:

INFORM SRL

Italy