In the rapidly changing arena of capital management,
Milliman offers objective insight on managing risk.
As the insurance industry develops more complex, riskier
products, and ways to mitigate such risks, new measurement tools are emerging
to better assess those risks and establish needed capital and reserve levels.
Economic capital calculations have become crucial for determining how much
capital is needed and how much is truly available. The methods and best
practices for determining economic capital are still evolving.
We advise on a wide range of capital
management services, including reinsurance, asset liability modeling, mergers
and acquisitions, securitization, and hedging.
We are experts at assessing capital
requirements under a multitude of frameworks around the world. Our risk
management expertise uniquely positions us to provide advice on strategies to
Client-specific economic capital models
Insurers rely on Milliman's strong track record of
tailoring internal capital models to satisfy individual client needs. We can
provide the incisive analysis necessary to meet regulators' requirements and to
conform to emerging industry standards in the United States, Solvency II in
Europe, and the IAIS' global framework.
Milliman works with capital-management clients in two
ways. We develop capital models for insurers from scratch, using our exclusive
software tools, such as MG-ALFA® and MG-Hedge®. We also assist companies in
adapting their existing models to incorporate newer, more sophisticated
Evaluating risk from every angle
The result is a complete picture that takes into account
underwriting, credit, market, liquidity, and operational risks. Each risk is
then evaluated for volatility, unforeseen catastrophe, and modeling
Having just the right amount of capital has never been
more important. Too much and business returns suffer, and product prices may
rise to uncompetitive levels. Too little and a company may run afoul of
regulators and rating agencies and be at risk of insolvency.
We can help you find that perfect balance point, where
you’re best positioned to excel in today's competitive marketplace.
Our support is tailored to the client's
specific requirements in every case. We have a wealth of global expertise in
helping clients discover the optimal balance of capital management strategies
to achieve their goals. As we never work on commission, our independent stance
makes us a highly sought source of advice in this field.