Adding value through Capital Management Solutions
Efficient capital management is a key consideration for many (re)insurance companies. Milliman are market-leading experts on capital management solutions and can support you through a range of services in this area.
Capital management under Solvency II
Solvency II presents a number of options in respect of capital management, including internal models and partial internal models, Volatility Adjustment, Matching Adjustment, use of ancillary capital, Own Funds restructuring, management actions, the Loss-Absorbing Capacity of Deferred Taxes, and USPs.
Hedging strategies
An effective market risk and credit risk hedging program is critical from a standpoint of both solvency and earnings stability for (re)insurers, and for managing counterparty exposures. Hedging strategies can also be implemented to manage lapse, longevity, mortality, and morbidity risk.
Reinsurance strategies
Reinsurance remains a key capital management tool for (re)insurers to find ways to manage risks and the related capital requirements, and to optimise solvency balance sheets. We can help identify, structure and model an effective reinsurance arrangement.
Risk-based investment strategies
An independent review of investment strategies, utilising techniques such as asset-liability matching and risk-return optimisation, can help improve efficiency with your capital management strategy, while preserving sufficient liquidity.
Unit underfunding
The potential capital benefits arising from under-funding of unit-linked liabilities represent a significant opportunity for many life insurers, which may lead to lower capital requirements, and greater stability of the Solvency II balance sheet
Other capital management solutions
We have experience implementing innovative capital management solutions for clients, such as: embedded value in-force securitisations and monetisation, overcoming contract boundary constraints, and structuring of contingent capital.
Milliman capital management products
Integrate
Automate and accelerate actuarial modelling and reporting with a powerful, cloud-based solution.
VEGA
Streamline Solvency II compliance with a multi-user, multi-site tool for Standard Formula SCR and quantitative reporting templates.
NAVI
Dramatically reduce the time required for life insurance reserves and liabilities calculations with innovative modelling.
Solvency II Compliance Assessment Tool
Monitor and assess compliance with Solvency II while creating an audit trail of completed work and a development plan for future actions.
Arius
Analyse unpaid claims liabilities with industry-leading stochastic and deterministic reserving tools and methods.