We offer financial services companies a broad range of assistance and more than 60 years of industry experience. Clients call on Milliman for:
Enterprise risk management
Our multidisciplinary experience around the globe gives us unmatched insight into the complexity and interconnectivity in the range of risks that companies face. Aided by our proprietary risk analysis tools, Milliman consultants can help companies balance their total risk exposures, including nonfinancial ones, and optimize their deployment of scarce risk capital.
Financial risk management
Milliman is the leader in applying advanced risk management methods like dynamic hedging to the financial risk challenges of insurers, reinsurers, and mutual fund providers. Our advice, software, and transactional abilities help companies implement prudent risk safeguards while enabling the product innovation that fuels sales growth.
Mergers and acquisitions
With financial services companies increasingly involved in insurance firm consolidation, Milliman offers expert opinion on M&A advisability and fair value, as well as integration strategy. We provided guidance in more than three-quarters of the major M&A deals in the life insurance industry over the past decade.
Securitizations
Milliman has played a major role in most of the significant life insurance securitizations that have occurred over the past several years. Our expertise includes Regulation XXX and AXXX reserve funding, mortality-catastrophe bonds, closed-block and embedded-value securitizations.
Product design, strategy, and market evaluation
In the past few years, Milliman has evaluated more than 50 life insurance and annuity products for banks and thrifts. We also advise on insurance and securities sales practices. Evaluations have included pricing, designing, and filing new products and modifying existing products.
Producer and broker-dealer compensation
When insurance products are introduced by banks and thrifts, it can be difficult to balance attractive compensation with cost effectiveness. Milliman's experience is valuable in designing compensation plans that achieve these twin objectives.
Market conduct and regulatory compliance
The move by many banks and thrifts into insurance product distribution has drawn regulatory scrutiny on product suitability and appropriate sales practices. Milliman experts guide firms on best products and practices, including compliance with Insurance Marketing Standards Association rules.
Client example: strategic planning and alliances
Some of the challenges banks and thrifts face in distributing life insurance products can be addressed through forming one or more strategic partnerships or affiliations—a process in which Milliman, with our substantial network of contacts, can provide both guidance and valuable introductions.
One Milliman client was contemplating a move into the retirement-income market. Our strategic review analyzed existing players, their product and service offerings, and the feasibility of product alternatives. We also evaluated the possibility of acquiring a company in that market or allying with an insurance partner.
Our analysis provided the information necessary for the firm to develop a retirement-income market strategy. This client is currently planning to introduce a product and support services within the year.
