Research project will ensure pension savings
Department of Mathematical Sciences participates in a new IT-research project aimed at providing tools for better solvency and risk management. Innovation Fund Denmark invests DKK 9 million in the project.
The Danish pension system is currently under pressure on several fronts: Longer life expectancy, new and more risky products, more stringent requirements from the EU and increased competition. The pension providers must to an even greater extent manage their risk and business to ensure the return of the Danes' pension schemes in future. The project will develop tools for that purpose.
More specifically, the project aims to develop a calculation platform that can be used to model the companies' business in a number of possible future scenarios.
The project is a collaboration between the University of Copenhagen, the IT University and the software company Edlund A/S. The project, which goes under the title "Projection of Balances and Benfits in Life Insurance" (ProBaBLI), commenced at the beginning of 2018 and extends over 4 years.
The potential for the project is great, as the aim of the platform is to create a solution that can be used by the entire industry, and subsequently be exported to other countries with pension systems which resembles the Danish, for instance Sweden and Norway.
"The fact that we with the project addresses some international legislative trends means that if we succeed, we will in future also be able to solve tasks in other countries," says Mogens Steffensen, project participant and professor at Department of Mathematical Sciences, University of Copenhagen.
The project team calls the initiative ambitious. However, they are optimistic; with their mix of competencies they have a solid basis for creating the platform which in future will help to ensure a stable Danish pension system.
Innovation Fund Denmark investment amounts to DKK 9.1 million; 6.2 million DKK to Department of Mathematical Sciences, the rest to the IT University. The department expects to affiliate three PhD students to the project.