The spread of applications that make use of artificial intelligence, supporting both internal processes and the supply of services to users, produces several qualitative and quantitative benefits (in areas ranging from back-office processes to the analysis and management of credit, cyber and operational risks, and from marketing to financial investment advisory services).
The other method assumes that the sponsor could become insolvent at any time, and so sufficient funds to cover actuarial liabilities must always be available to cover that risk. But the use of the solvency test can, in some circumstances, place an inappropriate burden on sponsors that are unlikely to become insolvent. Consider what happens when asset values are temporarily depressed relative to liabilities.