Hedgeness Inc. has an idea: Offer insurers, financial professionals, and others interested in variable annuities a data analysis tool they can use to compare existing annuity contracts with one other; existing contracts with hypothetical contracts; and real contracts with the performance of investment portfolios that come without any guarantees.
The Chicago-based company is already using the tool in-house, to support consulting projects.
Last summer, Hedgeness showed off the capabilities of its system by preparing a study comparing the value of the guaranteed lifetime withdrawal benefits riders available with seven different variable annuity contracts.
Hedgeness plans to begin selling the system as a cloud-based product, that clients can play with on their own, sometime in the next three months, Singh said in a recent interview.
The company came to life in 2016.
The company is using a variety of data streams, including streams reflecting the performance of the options contracts used inside variable annuities, to model the performance of the annuities preloaded into the system, and of other real and hypothetical products and portfolios.