While each institutional investor and/or catastrophe-focused hedge fund is ultimately responsible for the construction and performance of its investment portfolio(s), Milliman can provide independent reviews in a number of key areas. This step is particularly important given the rising prominence of private collateralized reinsurance deals in the marketplace, whose customizable nature allow funds to take on risks that are more complex.
Milliman offers expertise to help investors maintain an edge in an increasingly competitive marketplace. Reviews can include:
- Review of contractual terms to ensure accuracy in price modeling
- Limited reviews of input/output reasonability of third-party vendor catastrophe models
- Limited reviews of internal pricing models for nonstandard perils
- Technical review of pricing workpapers utilizing loss model outputs
- High-level reasonability and consistency review of overall pricing approach and portfolio composition
- Best practices review of client pricing processes, operational risks, systems of internal peer review, etc.