The challenge

In the world of finance, major shifts in the risk landscape change more rapidly than ever. An insurer that performs a closing of accounts on a quarterly basis can be susceptible to unforeseen bankruptcy risk or a shift in share value before having time to react.

When a leading global reinsurer decided to create a system that performs a full closing of accounts daily, it needed to advance well beyond its current system: Over 10,000 Excel models requiring individual review. The desire to perform daily full projections in all GAAPS (local, IFRS 17, IFRS 4, Solvency II, etc.) for its worldwide portfolio of non-seriatim treaties was also aligned with a goal to provide employees with dashboards showing the daily major changes & impacts on the business.

The key goals were:

• All GAAPs & profit-sharing calculations performed in one single tool
• Fully automated & integrated process, yet with the ability for users to perform adjustments at any step
• Integrated & comprehensive dashboards
• Sensitivity analysis
• Analysis of change
• Full retrocession projections & consolidation

If you’re like other life insurers in this situation, you might have thoughts like:

“Our actuaries need better tools to validate the projection performed.”

“Quarterly projections are not frequent enough to keep up with unexpected market disrupters.”

“We need a system that contains one powerful model, not thousands that each require manual review.”

The approach

Milliman Mind is a cloud solution that takes existing, difficult-to-manage Excel models and transforms them into one dynamic, accessible model that performs at scale.

Computing power

With enough RAM to run frequent projections in a matter of hours for even the largest companies, clients can be sure they have the data on hand to respond quickly to unexpected disasters or abrupt changes in the market.

Centralized system

Programmed in C#, Milliman Mind computes non-seriatim models far better than Excel based systems at a greater scale, allowing for one seamless design.

Multi-layer controls

Actuaries can make changes to the model and validate projections within an architecture that maintains security of both the data and the model.

The solution

In Milliman Mind, the reinsurer centralized and consolidated tens of thousands of Excel models. It established a full reserving process that runs automatically each night and provides a complete dashboard to more than 60 users each morning. The new model features a complete workflow with multi-layer controls & sign offs, and generated projections are then uploaded within the different IT systems.

With a centralized, cloud-powered system, the reinsurer can run a full closing of accounts daily using all different GAAPs, with the results ready to review each morning. Any major events that have an impact on the market are addressed immediately. By migrating to Milliman Mind, bankruptcy risk is greatly reduced along with the risk of error in non-seriatim models.

Learn more about what Milliman Mind can do for you, here.