Milliman works with insurance regulators in a variety of cases, including situations where a state insurance commissioner has taken control of an insurance company. Regulators trust us to provide actuarial advice in these situations, offering an unbiased assessment of the company’s situation.

We perform asset-adequacy testing to determine whether an asset shortfall exists relative to projected liabilities. We also can play a substantial role in sale negotiations that are being overseen by state regulators.

In many cases where an insurance firm has come under the control of a state regulator, bankruptcy court may be involved. Sale negotiations may call for a high degree of discretion. Milliman's experience in expert witness testimony and litigation support provides critical support in these cases, as does our reputation for holding client information in strictest confidence.

Reserve analysis hastens successful sale

One troubled insurance company in the West was put under state control. The state approached Milliman with concerns about the company's reserve levels.

Milliman performed asset-adequacy testing, which showed the company's reserves would not be adequate if interest rates changed adversely. Our quantification of the scope of the shortfall helped the state insurance commissioner to oversee a successful sale of the business to a larger insurer in another state.