Economic capital modeling — Property & Casualty

Milliman on ERM: Inertia has a cost

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For property and casualty insurers, Milliman's economic capital modeling solution employs Conning's ADVISE software platform and GEMS Economic Scenario Generator. ADVISE is a comprehensive financial simulation engine that provides true enterprise-wide financial modeling capabilities. GEMS enables users to produce forward-looking simulated global economies and financial markets, including pricing of derivatives and alternative assets.

Competitive advantages include:

  • Immediacy - The Milliman/Conning solution employs a proven software platform that is fully operational today. You can begin inputting data and running models immediately without the time or cost of hiring software developers to build the model from scratch or dedicating in-house IT resources.
  • Flexibility - We recognize that every company's economic capital modeling needs are different. That's why our solution is modular, enabling you to use only those capabilities you need now, and to add additional capabilities over time. Available modules include Conning's GEMS economic scenario generator, which simulates a company's economic operating environment, providing a common economic modeling framework across the enterprise to ensure consistency.
  • Insight - Economic capital models are only as good as the inputs that drive them. By applying our actuarial judgment, experience, and expertise, Milliman helps clients properly parameterize their analyses to obtain more predictive results.
  • Scalability - The Milliman/Conning solution enables clients to model the interactions of the broadest spectrum of risks, and is scalable to handle the large and heterogeneous data sets that economic capital modeling demands without losing granular detail.
  • Usability - Multiple users can access the Milliman/Conning solution simultaneously. Reports and dashboards can be tailored to different users and reports can be generated to meet a variety of needs - from financial analysis to regulatory reporting to board-level decision making. Standard reports built into the software package include GAAP and statutory financial statements.

Next Steps

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