ILS Pricing Reviews

While each institutional investor and/or catastrophe-focussed hedge fund is ultimately responsible for the construction and performance of its investment portfolio(s), Milliman can provide independent reviews in a number of key areas. This step is particularly important given the rising prominence of private collateralised reinsurance deals in the marketplace, whose customisable nature allow funds to take on risks that are more complex.

Milliman offers expertise to help investors maintain an edge in an increasingly competitive marketplace. Reviews can include:

• Review of contractual terms to ensure accuracy in price modelling
• Limited reviews of input/output reasonability of third-party vendor catastrophe models
• Limited reviews of internal pricing models for nonstandard perils
• Technical review of pricing workpapers utilising loss model outputs
• High-level reasonability and consistency review of overall pricing approach and portfolio composition
• Best practices review of client pricing processes, operational risks, systems of internal peer review, etc.