Throughout the world, Milliman consultants are known for an independent outlook and unbiased advice in analysing reserve calculations. Our depth of experience makes us uniquely qualified to perform reserve evaluations for clients operating in the dynamic markets of Central and Eastern Europe.
Milliman actuaries use our advanced, proprietary tools to assist them in applying innovative projection techniques. We excel not only in making these sophisticated calculations, but in clearly communicating the results and their implications to our clients.
Improved reporting procedures for multiline client
Milliman helped a team of actuaries at a large Russian multiline insurer improve its management reporting procedures through a reserve and actuarial methodology review. Our analysis found the team was spending three times as many hours adjusting and cleaning data as it did documenting and analysing the results of the calculations.
Further, we found that management did not adequately appreciate the inherent uncertainty in their actuary's estimates. We helped our client's actuary develop and document the methods employed to estimate reserves and reserve uncertainty. Our written and oral suggestions to management were implemented and continue to form the foundation of management's reporting procedures.
Review leads to improved assumptions
Supporting an initial public offering for a major reinsurance group, Milliman reviewed the gross and net technical provisions of the reinsurance parent and six primary companies writing business across CEE.
Our thorough internal comparisons of business ceded from the primary companies, and assumed by the reinsurance parent, identified areas where our client's simplifying assumptions with respect to group consolidation were suboptimal. Our advice improved the internal group-wide reserving framework, removing unnecessary volatility in the consolidated results.
During the same review, we documented that the summarized loss and exposure data supplied by some of the insurer's smaller divisions was of poor quality, compromising the accuracy of the groups' reserving estimates. The data submitted to the parent did not always reconcile with the data each division used for its own single entity calculations. We assisted in developing a group-wide reserving framework that included data validation and enhanced communication with colleagues in other entities. As a result, we were able to obtain more reliable data for our reserve review and could express more confidence in our consolidated estimates.