12 August 2022 - By Matthew Murray
Inflation can affect worker’s compensation due to its long-tailed nature, and we can estimate the impact using some simplifying assumptions.
04 August 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
Milliman reports 12 basis points increase in Hedge Cost Index for VA guarantees in July, index stands at 147 basis points.
02 August 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our June review of the markets and Solvency II discount rates.
01 August 2022 - By Jonathan B. Glowacki, Judith-Anne Brelih
Mortgage originations continued to decline over the first quarter (Q1) of 2022 compared to the fourth quarter (Q4) of 2021.
25 July 2022 - By Greg Dietzen, Matt Chamberlain
As P&C insurers face a greater number of natural disasters with a warming planet, catastrophic models can help the industry better understand climate risk
25 July 2022 - By Andrew Netter, Jonathan B. Glowacki
Rising rates continues to drive persistency increases, credit performance remains strong, reserve releases continue, ILN capital markets less attractive vs. reinsurance.
23 July 2022 - By Melissa Huenefeldt, Michael Paczolt
This article discusses how artificial intelligence and machine learning are used to gather comprehensive claims data from structured and unstructured data fields, solving complex problems and reducing total cost of risk.
21 July 2022 - By Jenica Ghorashi
This market recap covers a pattern of volatility and includes commentary on market risks, including the war with Ukraine and concerns about inflation.
15 July 2022 - By Subhash Khanna, Shamit Gupta
With changes to reporting standards and regulatory regimes – plus a challenging economy – insurers reconsider the outsourcing of core actuarial functions
13 July 2022 - By Karen K. Rudolph
Hear real-life experiences and get an “inside the company” look at the regulatory examination of PBR valuations, when Milliman’s Karen Rudolph sits down with Catherine Murphy from John Hancock and Sarah Theis from WoodmenLife.
08 July 2022 - By Eamonn Phelan
This briefing note discusses the guidelines put in place to assist firms on their journey to operational resilience as well as outlining the challenges which must be overcome in doing so.
08 July 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
Milliman reports 11 basis points decrease in Hedge Cost Index for VA guarantees in June
06 July 2022 - By Prannoy Chaudhury
While 'sidecar' reinsurance vehicles have been a common structure in the U.S. property and casualty industry, their use has become more common in the life and annuity industry as well.
24 June 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our May review of the markets and Solvency II discount rates.
23 June 2022 - By Eric J. Wunder, Joe Michels
While few companies use the same firm for auditing and actuarial services, it makes sense for all to keep them separate rather than risk a fine or lawsuit.
14 June 2022 - By Andrew Provines
We discuss 3 claim types public-entity risk pools face: false arrest and wrongful convictions, land use violations, and civil rights violations and retaliation.
03 June 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 146 bps as of the end of May 2022, down 2 basis points from the previous month, driven by a slight increase in long-term interest rates.
31 May 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our April review of the markets and Solvency II discount rates.
25 May 2022 - By Neil Cantle
In the May issue of The Actuary, we examine how our increasingly interconnected world makes it challenging to predict future outcomes.
24 May 2022 - By Katherine A. Warren, Jeffrey T. Marzinsky, Zorast Wadia, Dominick Pizzano
Join us while we share insights and market outlook from the 2022 Milliman Pension Funding Study which looks at the funded status, P&L and balance sheet impact alongside the key economic assumptions of the largest US corporate sponsors of defined benefit plans.
23 May 2022 - By Travis J. Grulkowski, Christine M. Fleming, Alex York, Sam Sager, Brekk Hayward, Joe Michels
Federal black lung claims differ from other workers’ comp due to multiple potential payers, complex adjudication, much longer reporting and payment lags.
17 May 2022 - By Aaron Shapiro, Rebecca Ross
We provide an overview of the requirements of Actuarial Standard of Practice No. 51, and then look at how it has been implemented with pension plans.
09 May 2022 - By Stephen R. DiCenso, Kathryn Kern
How a well-governed and structured insurer can build a lasting enterprise-risk-management framework to address climate change risk.
06 May 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 148 bps as of the end of April 2022, down 20 basis points from the previous month, driven by an increase in long-term interest rates.
03 May 2022 - By Marcus Scheffer, Lennart Albertsen, Peter H. Sun, Neil Dissanayake, Chunpu Song, Sihong Zhu, Jessica Crowson, Kelly Yang
ESG investing returns have been comparable to the general market, showing how investing in the space is an opportunity, not a constraint
26 April 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our March review of the markets and Solvency II discount rates.
22 April 2022 - By Jenica Ghorashi
Markets pulled back over another volatile quarter, down across the board
19 April 2022 - By Andrew Netter, Jonathan B. Glowacki
Year-end results reflect strong performance across the industry, IIF compositions analyzed, reserve releases begin, rising rates likely to drag on NIW in 2022
05 April 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 168 bps as of the end of March 2022, down 13 basis points from the previous month, driven by an increase in long-term interest rates.
30 March 2022 - By Victor Huang
How we use futures contracts to manufacture put-option payoffs rather than purchasing puts directly, a likely more cost-effective approach over the long-term.
28 March 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our February review of the markets and Solvency II discount rates.
10 March 2022 - By Jonathan B. Glowacki, Judith-Anne Brelih
Mortgage originations declined during the fourth quarter (Q4) of 2021 compared to the third quarter (Q3) of 2021.
04 March 2022 - By Alex York, Christine M. Fleming
One in 10 underground coal miners who worked for at least 25 years have black lung disease, according to National Institute for Occupational Safety and Health.
03 March 2022 - By Victor Huang
As inflation intimidates the markets, a futures-hedging strategy can provide better portfolio risk management, giving downside protection against market volatility.
03 March 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 181 bps as of the end of February 2022, down 9 basis points from the previous month, driven by an increase in long-term interest rates.
02 March 2022 - By Adél Drew
Operational resilience is top of mind for U.K. regulators, appearing in Prudential Regulation Authority and Financial Conduct Authority business plans for 2022.
25 February 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Our January review of the markets and Solvency II discount rates.
22 February 2022
We recap the trends in the LIBOR rates, SOFR trade and volume counts and those for other currencies for January in this final issue.
08 February 2022 - By Colin Finch
Risks such as COVID-19, climate change, cyberattacks, and evolving socioeconomic issues are not isolated to one side of a balance sheet, or one fiscal year.
08 February 2022 - By Stephen R. DiCenso
New York domestic insurers need to focus on two specific action steps in the wake of guidance issued on managing the financial risks from climate change.
04 February 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
Milliman reports 9 basis points decrease in Hedge Cost Index for VA guarantees in January.
21 January 2022 - By Jenica Ghorashi
We take a look at the S&P 500 Index, Russell 3000 Index, and others, along with the U.S. equity, non-U.S. equity, and U.S. fixed income.
21 January 2022 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Learn more on Solvency II discount rates, and the state of the local and global markets at month end.
19 January 2022
We recap the main metrics for total liquidity for interest rate and overnight indexed swaps for December.
07 January 2022
We present a roundup of the top 10 most-read articles on the Milliman Ireland website last year, such as the Solvency II 2020 Review by EIOPA
05 January 2022 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
Milliman reports 2 basis points decrease in Hedge Cost Index for VA guarantees in December.
05 January 2022
Our top 10 Insight articles list for 2021 shows how challenges like the pandemic and legislative changes have impacted our industries.
29 December 2021 - By Maarten Ruissaard, Maayke de Boer
On 10 December 2021 the European Insurance and Occupational Pensions Authority (EIOPA) published a consultation on the application guidance on running climate change materiality assessments and using climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
23 December 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
In November, major equity indices and the euro fell, major bond indices were up, and risk-free rates for the euro declined.
23 December 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
In November, major equity indices and the euro fell, risk-free rates for the euro declined, while inflation rose.
23 December 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
In November, major equity indices and the pound fell, risk-free rates for the GBP and euro declined, while inflation rose
23 December 2021 - By Adél Drew
Exponential growth for climate change could mean the work begin done now to reduce carbon emissions will have a lag before any change is seen.
20 December 2021 - By Andrew Netter, Jonathan B. Glowacki
Quarterly NIW composition reflects purchase market, forbearance exits continue, reserves established during 2Q and 3Q 2020 remain largely unchanged
17 December 2021 - By Mohamed Benkhalfa, Eliott Pradat
This white paper exposes the challenges for insurers regarding cyber risks coverage.
16 December 2021 - By Stephen R. DiCenso
Examples of shifts in attitude toward climate change in the U.S. regulatory landscape.
16 December 2021
Our monthly report reviews 18 charts showing the main metrics for total liquidity for interest rate and overnight indexed swaps, and for those same categories by tenor.
16 December 2021 - By Neil Cantle
Regulators want insurance carriers to fold climate change into their risk management and reporting, and a top-down view can identify what matters.
08 December 2021 - By Tyler Armstrong, Randy Beams, Robert Eaton
To maintain assumption integrity, actuaries use the modeling principle called conservation of mortality.
07 December 2021 - By Adél Drew
How BP’s recent closure of a few petrol stations led to a fuel crisis, and what we can learn from it in terms of risk management and operational resilience.
02 December 2021 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 201 bps as of the end of November 2021, up 4 basis points from the previous month, driven by a decrease in long-term interest rates.
01 December 2021 - By Pingni Eng, Erica Chan
As COP26 reminds us that climate change will impact the global financial system, insurers should now be thinking about stress testing and risk assessments.
30 November 2021 - By Neil De Beger
When considering risk management, a digital portfolio simulator shows how not all fund managers offering downside protection are equal.
30 November 2021 - By Andrew B. Groth, Jonathan Riehl
Smart infrastructure systems and data platforms have the potential to make cities more efficient, requiring the development of novel risk management strategies.
30 November 2021 - By Alexandre Boumezoued, Leo Tondolo
Sensitivity testing with dependence has the potential for a wide range of applications in reporting, such as for Solvency II, IFRS 17, and balance sheet valuation.
22 November 2021 - By Poojan Shah, Ram Kelkar, Brian J Olson
There are significant implications of the impending discontinuation of LIBOR and transition to SOFR for U.S. annuity liability valuations.
22 November 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
In October, most major equity indices rose, short-term British pound yields increased, and risk-free rates for the GBP and euro were up.
19 November 2021 - By Jonathan B. Glowacki, Judith-Anne Brelih
As interest rates rose in the second quarter (Q2) of 2021, total mortgage originations declined.
17 November 2021
We don’t know whether a market correction is around the corner, so plan sponsors should remind themselves the current good news won’t continue indefinitely.
17 November 2021 - By Robert Eaton, Tim Rozar
Learn what role trust plays in the digital world of insurance and how it has changed since the COVID-19 pandemic.
16 November 2021 - By Melissa Huenefeldt
Operational changes impact your company’s risk management, and actuaries can help you make the appropriate adjustments
12 November 2021
We recap the trends in volumes and trade counts for October.
10 November 2021 - By Pingni Eng, Chong Wen Ang
Insurers have the benefit of a later IFRS 17 adoption date than other countries, but face technical implementation challenges specific to the market.
08 November 2021 - By Claire Booth, Dana-Marie Dick, Adél Drew, Lewis Duffy, Amy Nicholson, James Wilkie
This primer summarises key points to consider in addressing climate-related financial risks and opportunities.
01 November 2021 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 197 bps as of the end of October 2021, up 2 basis points from the previous month, driven by a decrease in long-term interest rates.
26 October 2021 - By Wen Yee Lee, Alex Bryant, Shir Lynn Ong
This e-Alert reviews the position of participating funds in Singapore at the end of 2020, based on public information published in 2021.
21 October 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
September delivers some ups and downs: Equity and bond markets mostly fell, risk-free rates rose, UK inflation increased, and volatility notched upward.
20 October 2021 - By Jenica Ghorashi
Markets were mixed over the quarter as higher volatility returned, providing minimal results following strong performance in the first half of the year.
19 October 2021 - By Hana Ghazali, Derek Ling, Michael Daly
New developments give potential for Hong Kong insurers, although various challenges will need to be overcome.
11 October 2021 - By Jonathan B. Glowacki
Evaluating a CRT transaction requires the ability to process large loan pools, the structure of the transaction, and outcomes over a range of possible outcomes
04 October 2021 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 195 bps as of the end of September 2021, down 11 basis points from the previous month, driven by an increase in long-term interest rates.
30 September 2021 - By Rachel Soich
Action items include purchasing cyber insurance, thoroughly understanding D&O policies, and instituting cyber risk prevention and mitigation strategies.
23 September 2021 - By Andrew Provines, Mary Ann McMahon
Learn more on whether single parent captive insurers themselves earn higher profits than other forms of insurance.
16 September 2021 - By Hervé Andrès, Pierre-Edouard Arrouy, Paul Bonnefoy, Alexandre Boumezoued, Sophian Mehalla, Julien Vedani
Learn why the best economic scenario generator solution provides the choice of different methods and what challenges real world models pose.
16 September 2021
ESTR volumes way up, EURIBOR swaps more muted, and SONIA volumes well above GBP LIBOR swaps across all tenors.
02 September 2021 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 206 bps as of the end of August 2021, up 2 basis points from the previous month, driven by a decrease in long-term interest rates.
02 September 2021 - By Durand Oliver
Risk may be rising, but investors still have time to review key lessons to avoid making the same mistakes that have destroyed portfolios in past crises.
01 September 2021
For this PULSE survey, we looked at employee financial well-being in the face of an enduring global pandemic.
24 August 2021 - By Carl X. Ashenbrenner, S. Andrew Kline
U.S. general aviation premium increased 33% over the last two years, and market profitability has been consistently negative over the last five.
05 August 2021 - By Jonathan B. Glowacki, Judith-Anne Brelih
GSE mortgage default risk increases for first time since 2019, to 1.52% for loans originated in the first quarter, up from 1.38% in the fourth quarter 2020.
23 July 2021 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Keeping you apprised: View snapshot on the local market and beyond.
23 July 2021 - By Jenica Ghorashi
Markets were up broadly over the quarter as the global economic recovery continued.
21 July 2021 - By Chris Beck, Blake Fleisher
Following AXA’s decision to scale back underwriting insurance that reimburses payments, we examine how companies can analyze whether to pay ransom themselves
16 July 2021
ESTR volumes drop again in June, while volumes for EURIBOR swaps trading remain stable, and those for SONIA continue overtaking GPB LIBOR swaps
08 July 2021 - By Simon Ho
Milliman explains in a Q&A with financial advisors how SmartShield works and why it provides a compelling reason to stay invested through all market conditions.
07 July 2021 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 197 bps as of the end of June 2021, up 13 basis points from the previous month, driven by a decrease in long-term interest rates.
06 July 2021 - By Kevin Manning, Paul Marron, Eamon Comerford
Commercial and residential mortgages can give European life insurers meaningful returns in the search for yield.
30 June 2021 - By Trever Mertz
With relentless annual increases in legal costs for companies, we answer some questions on spend management platforms, clarifying their key distinctions.
28 June 2021 - By Andrew Netter, Jonathan B. Glowacki
Continued strong NIW, movement in quarterly market share among insurers, improvements in IIF performance, and an update on MILN issuances to-date
23 June 2021 - By Victor Huang
Older investors need to be particularly cognizant of controlling volatility and minimizing the impact of sustained market drawdowns
18 June 2021
May 2021: ESTR volumes drop, EURIBOR volume stable, and SONIA volumes well above GPB LIBOR swaps
16 June 2021 - By Durand Oliver
Why downside protection, an effective risk management technique used by insurers, is the way to safeguard investment portfolios from extended market downturns.
07 June 2021 - By Nancy P. Watkins
The need to cross-pollinate: Milliman gathers industry leaders to discuss climate impacts and solutions, working to solve the problem of climate resilience.
04 June 2021 - By Zorast Wadia, Heidi tenBroek
Once-in-a-lifetime financial crises push Fortune 100 companies to financial stability.
04 June 2021 - By Conor Callaghan , Eoin King
Recovery plan requirements update: This briefing note summarises the published regulations and guidelines of the Central Bank of Ireland (CBI).
27 May 2021 - By Patrick Meghen, James Johnston
In this briefing note we discuss some of the main items for firms to consider in this proposed guidance.
24 May 2021 - By Donal McGinley
Why are actuaries started using Python programming language? Learn more in this briefing note.
21 May 2021
ESTR volumes way up, EURIBOR swaps more muted, and SONIA volumes well above GBP LIBOR swaps across all tenors.
18 May 2021 - By Brian Z. Brown, Rachel Soich, Christopher Fredericks
Protect yourself: How errors and omissions coverage can safeguard against potential lawsuits for professional services firms.
17 May 2021 - By Sinéad Clarke, Orlaith Lehane
The European Insurance and Occupational Pensions Authority (EIOPA) has published its opinion on the supervision of the use of climate change risk scenarios in ORSA.
17 May 2021 - By Ehab Atassi, Neha Taneja, Rahaf Alhodaif
Ways to reduce the burden of road traffic accidents in Saudi Arabia.
14 May 2021 - By Alexandre Boumezoued, Fanny Pouget, Freek Zandbergen
Key takeaways from EIOPA’s comparative study on market and credit risk modelling.
05 May 2021 - By Durand Oliver
Investors can maintain upside exposure to growth assets and achieve a high level of insulation against market risk by constructing portfolios with Maverick’s confidence and Iceman’s discipline.
04 May 2021 - By Jonathan B. Glowacki, Judith-Anne Brelih
GSE loan default rates remain unchanged at 1.27%, while those for Ginnie rise 25 basis points to 7.64%
28 April 2021 - By Jenica Ghorashi
First quarter 2021 market recap: Equities rise, but bonds fall due to rising longer-duration interest rates.
28 April 2021
Benchmark Rates Liquidity Monitor for March 2021: ESTR volumes up, and SONIA volumes overtake GBP LIBOR swaps for key long-term tenors.
21 April 2021 - By Eamonn Phelan, Conor Callaghan
This briefing note considers aspects that supervisors have recently commented upon, along with other topical areas that companies may find useful to consider when preparing their 2021 ORSA.
06 April 2021 - By Donal McGinley, Cormac Gleeson, Matthew McIlvanna, Eóin Stack
In this briefing note, we look at how organisations can structure their model governance framework and provide some ideas on how actuaries can consider the new section of ASP-PA2, in relation to model governance to ensure that they are meeting the standard.
05 April 2021
Benchmark Rates Liquidity Monitor for February 2021.
24 March 2021 - By Andrew Netter, Jonathan B. Glowacki
Continued strong NIW, accommodative borrower forbearance policies extended, focus on reserving and ultimate outcomes of delinquent inventory, and 2021 MILN issuances begin.
19 March 2021 - By Chris Harner, Chris Beck, Blake Fleisher
This white paper discusses the importance of modeling cyber risk for businesses.
17 March 2021 - By Lupco Blazeski, Keith Lockwood, Suzanne Norman, Peter H. Sun
This paper introduces Milliman’s Retirement Income Security Evaluation (RISE) Score, which measures how well a retirement portfolio will be able to cover basic living expenses, health care and other costs after leaving the workforce.
17 March 2021 - By Amy Nicholson, Dianie Ravinthiranathan, Jennifer van der Ree
Some thoughts on potential approaches to winding up with-profits funds.
11 March 2021 - By Russell Ward, Neil Dissanayake, Nima Shahroozi
While inflation is stable today, members should manage this rising risk for their portfolios.
11 March 2021
Trading volumes in EUR and GBP interest rates swaps and overnight index swaps picked up in January 2021.
23 February 2021 - By Sheila Jelinek, Suzanne Norman, Jeanne Russo
This paper details the low rates of financial literacy in the U.S., explores the factors behind it, and offers some timely ideas and resources for raising our level of financial literacy as a society.
12 February 2021 - By Tian Kang Lim, Victor Huang
Transaction costs incurred within rebalancing strategies, can result in a material drag on performance.
29 January 2021 - By Neil Dissanayake, Nima Shahroozi
Bespoke fund overlays can allow the flexibility to be able to provide beneficial risk management to its members.
29 January 2021 - By Neil Dissanayake, Nima Shahroozi
In the area of investment management, the events of 2020 have brought the importance of risk management to the fore.
29 January 2021 - By Neil Dissanayake, Nima Shahroozi
How could low carbon equity indices be a cost-effective way to take a first step in aligning with NetZero 2050?
28 January 2021
De Milliman Markt Monitor geeft u maandelijks inzicht in de belangrijkste financiële risico’s die voor u als pensioenfondsbestuurder of -professional relevant zijn.
27 January 2021 - By Joanne Buckle, Natasha Singhal, Kishan Desai
This report provides an updated view of National Health Service England prescription drug expenditure for FY 2019/20.
27 January 2021 - By Dmitry Zamkovoy
Cost pressures, efficiency of outsourcing and COVID-19 have all converged to make a compelling case for investment companies to reconsider outsourcing the trading function.
19 January 2021
Markets continued their advance over the quarter as accomodative monetary policy and multiple COVID-19 vaccine approvals bolstered the economic recovery.
15 January 2021 - By Matthew McIlvanna
This briefing note provides a short case study on migrating an Excel/VBA model to Milliman Mind.
08 January 2021 - By Brent Jensen, Matthew Smith
As we move into 2021 and hopefully out of the COVID-19 pandemic, it will be interesting to see the impact on the trends of alternative payment models.
04 January 2021 - By Matthew J. Kramer, Sam Shellabarger, Erica Reijula
This white paper compares and contrasts the financial benchmark methodology between the Direct Contracting Global and Professional options and the Medicare Shared Savings Program.
17 December 2020 - By Alexander Krauskopf , Christelle Desouhant, Joanne Buckle, José Silveiro, Judith Houtepen, Sinéad Clarke, Kishan Desai
This analysis compares information provided in the Quantitative Reporting Templates and Solvency and Financial Condition Reports and makes observations about the balance sheets and risk exposures of European health insurers.
16 December 2020 - By Neil Dissanayake, Victor Huang, Ram Kelkar, Peter Lin, David Schreiner, Nima Shahroozi , Brendan Tease
This report summarizes key findings from the 2020 update to Milliman's survey of derivative usage for risk management in the global life insurance industry.
09 December 2020 - By Dustin J. Grzeskowiak, Brent Jensen, Colleen Norris
This article provides an update of our previously published summary white paper on changes to the CMS Direct Contracting program.
03 December 2020 - By Josh Dobiac, Maarten Ruissaard, Freek Zandbergen
This paper addresses how hedgers can manage Solvency Capital Requirements, given the details of the proposed changes communicated by EIOPA in its consultation document.
18 November 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Most major equity indices experienced material losses in October, as the rising number of COVID-19 cases forced some European governments to introduce new lockdown restrictions, while emerging markets outperformed their developed market counterparts.
17 November 2020 - By Eamonn Phelan, Fred Vosvenieks, Cormac Gleeson, Eóin Stack, Gavin Maher
What are some approaches to developing a robust suite of Key Risk Indicators and what are the wider considerations for risk reporting?
17 November 2020 - By Patrick Meghen, Eoin King, Eamonn Phelan
Patrick Meghen provides an update on changes in Solvency II-related requirements, Eoin King discusses the latest on ORSA, and Eamonn Phelan presents recent Milliman thought leadership on the design, calibration and reporting of effective key risk indicators.
16 November 2020 - By Chris Harner, Chris Beck, Blake Fleisher
To balance the time-sensitive nature of the M&A process with the need to protect against acquiring a breach and destroying value, firms need to employ an efficient and repeatable cyber risk analysis strategy.
13 November 2020 - By Catherine M. Murphy-Barron, Doug Norris, Daniel J. Perlman
As chief financial officers and actuaries attempt to determine the pandemic’s impact on year-end financial statements, this article describes five issues that require additional attention.
09 November 2020 - By Martijn van Rooijen, Maarten Ruissaard, Kendall Carolissen
This paper aims to provide a comparison of capital treatments for different asset classes with the focus limited to European commercial banks and life insurers.
06 November 2020 - By Jason Fichtner
How annuity decisions are framed has a major impact on the decision to annuitize. This essay offers three ideas to help work within this dynamic.
06 November 2020 - By George A. Sandy Mackenzie
Both preretired and already retired households have always faced, in varying degrees of severity, five basic risks. This essay describes and analyzes each of the five risks in detail.
06 November 2020 - By Colin Devine, Ken Mungan
Americans entering retirement face a considerable level of risk from the triple threat of longevity, market volatility, and long-term care.
05 November 2020 - By Jonathan B. Glowacki, Judith-Anne Brelih
While unemployment rates, delinquency rates, and the percent of loans in forbearance have increased rapidly since the beginning of the coronavirus pandemic, the housing market has remained surprisingly resilient.
27 October 2020 - By Janet Jennings, Sheila Jelinek, Suzanne Norman
While it is too soon to quantify all the effects from the COVID-19 pandemic, this paper could help women become more aware of resources and solutions to help them and their loved ones be more financially secure.
27 October 2020 - By Eamonn Phelan, Gavin Maher
What are some important considerations for risk managers in the ever changing environment of the (re)insurance industry?
21 October 2020
During the months following the February 2020 market drawdown, bonds, commodities, and stocks have all had a remarkable run, leading many investors and advisors to contemplate both the prospect of asset bubbles and the portfolio implications of those bubbles bursting.
19 October 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
The British Pound lost 3.6% and 3.9% against the US Dollar and the Japanese Yen respectively, whilst weakening 1.7% against the Euro, as worries of a potential “Hard” Brexit increased the Pound’s volatility.
16 October 2020 - By Adam Schenck, Jeff Greco, Joe Becker, Ram Kelkar
The market contraction at the onset of the coronavirus pandemic in Q1 2020 was the biggest test of risk-managed investment products since the 2008 financial crisis. This paper puts the downturn into historical context and examines how Milliman FRM's products performed.
15 October 2020
Markets continued their advance over the quarter as accommodative monetary policy proved to dampen the negative impact of the pandemic.
14 October 2020 - By Eamonn Phelan, Fred Vosvenieks, Cormac Gleeson, Eóin Stack, Gavin Maher
This briefing note discusses how traditional emerging risk management frameworks may not fully capture the complexity of an emerging risk event and what lessons can be learned from COVID-19.
09 October 2020
On average, October is the most volatile calendar month of the year for the stock market. This year's contentious election may help to reinforce that trend.
07 October 2020 - By Zohair Motiwalla, Zi Xiang Low, Aatman Dattani, David South
In the third quarter of 2020, Milliman refreshed a survey that establishes currently held market practice in the application of “VM-21: Requirements for Principles-Based Reserves for Variable Annuities.”
30 September 2020 - By Andrew Netter
This article takes a closer look at the COVID-19 disruption’s impact on the GSE CRT market—including subsequent changes to new issuance deal structure, pricing, and capital markets versus reinsurance allocation.
21 September 2020
What are some of the risks related to ASOP 51 disclosures?
16 September 2020 - By Neil Christy, Stuart Reynolds, Samuel Burgess
Published in 2020, the Solvency and Financial Condition Reports provides information from year-end 2019.
16 September 2020 - By Neil Cantle, Nancy P. Watkins, Peter Kingsley of The Oracle Partnership
In this article, Milliman’s Neil Cantle and Nancy Watkins, along with The Oracle Partnership’s Peter Kingsley, discuss the role that actuaries and insurers can play in tackling climate change following the coronavirus crisis.
15 September 2020 - By Nate Gorst, Jonathan B. Glowacki
Now that we are several months into the COVID-19 pandemic, sufficient data exists to analyze its effects on the mortgage market and draw conclusions on the impact this disruption will have on the mortgage marketplace for the rest of 2020 and 2021.
15 September 2020 - By Nicholas Beihoff, Ryan Lindsay, Jonathan B. Glowacki
This article provides clarity on the Adverse Market Refinance Fee and its potential impact.
14 September 2020 - By Joe Becker
Four charts that provide historical context around the condition of the U.S. labor market.
14 September 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Equity markets had a positive performance in August with all major indices making gains for the month as investors and market participants continued to show strong demand for risk assets.
08 September 2020 - By Paul M. Fedchak, Stacy Koron
Changing consumer preferences and technology are driving much of the need for innovation and, as the emergence of COVID-19 has shown, the most vulnerable parts of an industrial sector can be quickly be brought down by an unexpected event.
01 September 2020 - By Farzana Ismail, Chong Wen Ang, Chew Hou Ng
In Malaysia, most insurance and Takaful companies have already started their implementation phase of IFRS 17, but there continues to be ambiguity in interpreting several areas of the IFRS 17 standard.
25 August 2020 - By Paul Sinnott, Michael Daly, Richard W. Holloway, Wing F. Wong, Chihong An, Wen Yee Lee, Stephen H. Conwill
This report compares and contrasts the various different approaches taken to embedded value reporting across Asian markets and insurers.
24 August 2020 - By Paul Fulcher, Russell Ward
A panel of senior investment professionals joined Milliman in late July to share thoughts on the economic implications of COVID-19.
19 August 2020 - By Grzegorz Darkiewicz-Moniuszko, Ed Morgan, Michal Bobrowski, Aldo Balestreri
How are joint interest rate and credit risk for risk-neutral valuation typically offered by providers of economic scenario generators?
13 August 2020 - By Derek Newton, Ian Penfold
This report summarises the fourth annual set of Solvency and Financial Condition Reports as they relate to non-life insurers regulated in the UK or Gibraltar and sets out the results of the analyses of these reports.
12 August 2020 - By Peter H. Sun, Chunpu Song, Victor Huang, Ram Kelkar
This paper examines the hedge effectiveness of a wide range of Variable Annuity carriers.
04 August 2020 - By Judith-Anne Brelih, Jonathan B. Glowacki
COVID-19 continues to create economic uncertainty, putting pressure on mortgage performance in 2020 Q1 though mortgage losses are not expected to be as severe as during the global financial crisis.
27 July 2020 - By Amy Nicholson, Sophie Smyth
The Climate Financial Risk Forum have produced a guide to help firms understand the risks that arise from climate change and to provide support on how to integrate these risks into strategy and decision-making processes.
17 July 2020 - By Chris Harner, Michael C. Schmitz
The ramifications of COVID-19 on the mortgage credit risk market are still being assessed, but mortgage defaults are not expected to be as severe as during the global financial crisis, Milliman’s Mike Schmitz and Chris Harner discuss.
25 June 2020 - By Manikant Prasad
This paper tries to solve the problem where a system or application, built over R, can communicate to a database with massive data volume, residing on a remote system, to retrieve only the chunks of data needed for current analysis to gain scalability and speed by leveraging the data management and querying speed of the databases.
12 June 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Equity markets continued their positive run in May as they made gains for the second month in a row.
11 June 2020 - By Stephen R. DiCenso
Even before the coronavirus, obstacles existed that slowed the uptake of insurtech solutions that targeted the reduction of customers’ losses.
26 May 2020 - By Claire Booth, Neil Cantle, Dana-Marie Dick, Ian Penfold, Natasha Singhal, Vidyut Vardhan
What metrics are most useful to insurance companies when considering the risks and impacts of climate change?
19 May 2020 - By Sheila Jelinek, Suzanne Norman, Michelle Richter
By increasing the number of female advisors, a greater number of clients can benefit from the unique perspectives and life experiences women bring to help people navigate critical financial decisions.
15 May 2020 - By Michael C. Schmitz, Jonathan B. Glowacki, Andrew Netter
This paper discusses COVID-19’s impact on the credit risk transfer market and reflects on the use of capital markets executions and reinsurance executions to meet government-sponsored enterprises’ goals.
07 May 2020 - By Alexandre Boumezoued
This white paper proposes two alternative and complementary views to the EIOPA’s final technical set of advice on the mortality and longevity shock calibration: a prospective approach in the spirit of one-year calculations and a retrospective analysis based on historical data from corrected mortality tables.
22 April 2020 - By Josh Dobiac, Bill Matczak, Jeff Greco
This white paper examines the process of constructing discount curves in accordance with Long Duration Targeted Improvements, including the criteria that should be used, and assesses the quality of the different algorithms used to build out a complete curve (including interpolation, extrapolation, and smoothing).
14 April 2020
Equity markets and high yield fixed income securities were down significantly for the quarter as investors reacted to the sudden onset of the coronavirus pandemic and the resulting economic consequences.
09 April 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Financial markets had a very turbulent month in March as more countries around the globe went into lockdowns amid the COVID-19 pandemic.
01 April 2020 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block is estimated to be 268 bps as of the end of March 2020, up 44 basis points from the previous month, driven by a decrease in long-term interest rates and an increase in volatility.
30 March 2020 - By Tony Dardis, Chloe Lau, Ariel Weis
The COVID-19 pandemic is raising some profound questions for risk practitioners.
30 March 2020 - By Chris Harner, David Kirk
Managing cyber risk in emerging markets such as South Africa poses unique challenges, as Milliman’s David Kirk and Chris Harner discuss.
20 March 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
Equity markets started the month strongly as they initially shrugged off concerns about the coronavirus epidemic.
16 March 2020 - By Fred Vosvenieks
Firms need to be thinking and acting with dynamism to manage the here and now of the global coronavirus pandemic and plan effectively for multiple future scenario pathways.
11 March 2020 - By Chris Harner, Chris Beck, Blake Fleisher
A cyberattack on even a mid-sized bank could ultimately cause a cascading failure of interbank funding, leading to a tipping point for a broader systemic liquidity crisis.
09 March 2020 - By Chris Harner, Chris Beck, Blake Fleisher
Cyber is proving to be the ultimate enterprise risk, encompassing not only information technology but also risks involving vendors, people, legal questions, and reputation, all while moving with stealth and a velocity that is extremely difficult to cope with.
03 March 2020 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block is estimated to be 224 bps as of the end of February 2020, up 24 basis points from the previous month, driven by a decrease in long-term interest rates.
19 February 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
After a very strong performance in 2019, equity markets started 2020 on the back foot due to fears of a coronavirus outbreak and rising tensions between the US and Iran.
06 February 2020 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block is estimated to be 200 bps as of the end of January 2020.
04 February 2020 - By Judith-Anne Brelih, Jonathan B. Glowacki
The latest monthly estimate of the lifetime default risk of U.S.-backed mortgages.
22 January 2020 - By Joe Becker
In the life of the U.S. economy and its financial markets, 2019 was in many ways an exceptional year.
10 January 2020 - By Christine Jello, Suzanne Norman, Patricia L. Renzi
Women face unique obstacles in securing the necessary roadmap for retirement.
07 January 2020 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 182 bps as of the end of December 2019, down 10 basis point from the previous month, driven by an increase in long-term interest rates.
11 December 2019 - By Joe Becker
The global equity market in November posted its third consecutive monthly return of more than 2% and its ninth positive monthly return for 2019.
11 December 2019 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
European equity markets had a solid performance in November as optimism grew that a “phase one” trade deal agreement may be reached between the US and China.
03 December 2019 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 192 bps as of the end of November 2019, up 1 basis point from the previous month, driven by a slight decrease in long-term interest rates.
19 November 2019 - By Heerak Basu, Richard W. Holloway, Philip Jackson, Sanket Kawatkar
In recent years, capital has become more of a constraint for Indian life insurers. This survey of a majority of Indian insurers asks how they're managing risk.
19 November 2019 - By Neil Dissanayake, Peter Lin, Nima Shahroozi
European equity markets had a mixed performance in October.
11 November 2019 - By Eamon Comerford, Cormac Gleeson, Eoin King, Kevin Manning, Daniel McAleese, Orlaith Lehane , Matthew McIlvanna
The potential role of pooled investment funds in helping alleviate Ireland’s affordable housing crisis.
11 November 2019 - By Joe Becker
The global equity market in October notched its second consecutive monthly return of more than 2% and its eighth positive monthly return for 2019.
01 November 2019 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 191 bps as of the end of October 2019, down 10 basis points from the previous month, driven by an increase in long-term interest rates.
25 October 2019 - By Josh Dobiac, Ram Kelkar, Jeanne Russo , David Schreiner
Major initiatives are under way to reform interest rate benchmarks and move away from Interbank Offered Rates (IBOR) to overnight near risk-free rates.
17 October 2019 - By Neil Dissanayake, Peter Lin
European equity markets made a strong recovery in September as the ECB cut the benchmark rate by 10 basis points and restarted its asset purchase programme in response to a weaker economic outlook.
15 October 2019 - By Joe Becker
Global equities rallied in September, recovering all of their losses from August and notching their third consecutive quarter of positive returns.
10 October 2019 - By Claire Booth, Emma Hutchinson
This paper discusses the key findings of the European Insurance and Occupational Pensions Authority’s report titled ‘Cyber Risk for Insurers- Challenges and Opportunities’ with respect to cyber risk as an element of an insurer’s own operational risk profile.
09 October 2019
Markets were mixed for the quarter as investors digested potential risks and opportunities in the market.
03 October 2019 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 201 bps as of the end of September 2019, down 10 basis points from the previous month, driven by an increase in long-term interest rates.
16 September 2019 - By Molly Barth, John W. Rollins
The visibility of climate’s impact on property hazard is increasingly leading individuals and their chosen leaders to ask: how might an increase in hazard affect the desirability of living in various communities, and how do we manage the socioeconomic impacts?
10 September 2019 - By Joe Becker
Global equities notched their worst month of the summer amidst heightened volatility.
05 September 2019 - By Daren Lockwood, Xiaohong Mo, Adam Schenck
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 211 bps as of the end of August 2019, up 38 basis points from the previous month, driven by a decrease in long-term interest rates.
03 September 2019 - By Joe Becker
Market observers have posited in recent years that Volatility Control funds represent a focal point of instability for financial markets.
30 August 2019 - By Rachel Soich
Due to the growing instability of directors and officers coverage, insurers have their eyes on three rising risks: increased securities action lawsuits, heightened awareness to social issues, and growing cyber risks and data protection laws.
23 August 2019 - By Neil Dissanayake, Peter Lin
Equity markets had a modest performance in July as the US Federal Reserve lowered interest rates by 25 points for the first time in 11 years.
21 August 2019 - By Chris Beck, Chris Harner
There is a significant need in the market to transform cyber assessments, information technology metrics, and information security into the common language of risk management.
26 July 2019 - By Charlie Howell, Michael Leitschkis, Russell Ward
This paper introduces ESG Rebase, a technology capable of accurately translating a baseline risk-neutral Economic Scenario Generator file representing an entirely different set of market conditions, such as nominal yield curve, equity volatility vector or fixed interest volatility surface.
03 July 2019 - By Claire Booth, Paul Fulcher, Fred Vosvenieks, Russell Ward
This paper provides some context for a discussion of insurer liquidity risk, exploring sources of that risk and providing some examples of where it has challenged insurers in the past.
19 March 2019 - By Joy A. Schwartzman
As corporate officers reevaluate their current directors and officers coverage, it is important to thoroughly understand the type of coverage purchased and to quantify a board’s potential risk or “claim severity.”