Milliman combines our global experience in the non-life industry with specific understanding of the markets of Central and Eastern Europe as we assist clients with feasibility studies. We have consultants based in Poland, Bucharest, and other major markets across the Continent with experience conducting feasibility studies in CEE. We know the primary players in these markets and are tracking the events that drive product and pricing changes.
Through our work with a wide range of clients and our familiarity with various public information sources throughout the CEE, our experts are able to benchmark expected loss emergence and loss payment patterns in various non-life lines of business in these fast-growing markets. We can project loss and claims handling expense ratios, and assess the reasonableness of commission structures. We also have on-the-ground experience with successful risk management and risk measurement techniques for this region.
We have conducted feasibility studies and reserve reviews to support merger and acquisition deals, new product introductions, and market entry proposals. Our consultants combine their own knowledge with use of sophisticated modeling tools to reasonably estimate technical provisions—especially unpaid claims and unearned premium liabilities—and the uncertainties inherent in such provisions in CEE markets.
A reality check for a market expansion
Recently, a leading European banking and insurance group asked Milliman to undertake a review of its business plan for an intended bancassurance market entry into Poland, offering motor, homeowners, and personal accident policies. In our role we reviewed the preliminary financial projections, including the appropriateness of the actuarial assumptions and the reasonableness of the implemented methodologies for the various lines of business.
Through our analysis, we were able to critically assess the underlying assumptions and calculations for precision and sophistication and supply suggestions for improvement. Our customized advice enabled this client to better understand the expected areas of uncertainty and form a more realistic expectation of the potential profitability for its proposed products in Poland.