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Asset/Liability Management

Milliman Agile ALM

Meet requirements for stochastic valuation without the cost and complexity of a full dynamic ALM model. Milliman Agile ALM is easy to implement, easy to understand, and affordable for insurers of any size.

The challenge

Dynamic ALM models are costly and complex

Regulations such as MCEV, Solvency II, and IFRS 17 increasingly demand stochastic valuation capabilities to calculate market stresses and report on items such as Time Value of Financial Options and Guarantees. However, the dynamic asset/liability management (ALM) models typically used for these purposes are expensive to implement and challenging to interpret. This makes compliance difficult for small and medium-sized life insurers.

The solution

Robust ALM modeling at a fraction of the cost

Milliman Agile ALM makes stochastic valuation accessible to companies of all sizes. It combines your existing liability model with a standalone asset projection model, using an iterative process to quickly arrive at a robust result. Using Milliman Agile ALM, you can test different investment strategies, optimize management actions, test product strategies, project capital requirements, and even validate other ALM models, all without massive investment or retraining.

BENEFITS

Milliman Agile ALM benefits

Reduce cost and complexity

Use existing liability models and standardized assets to speed implementation and reduce costs.

Understand the meaning behind the model

Enable even non-experts to understand results with an approach that combines well-understood liability models and intuitive asset modules.

Increase precision

Reduce the use of simplified or approximated variables with final calculations based on a full liability model and the ability to incorporate a wide range of management actions in the asset module.

FEATURES

Milliman Agile ALM features

High-quality results

Rely on outputs produced by experienced actuaries who deeply understand the challenges and business circumstances of ALM.

Flexible options

Get an approach tailored to your organization’s specific needs that can be adapted over time as those needs change.

Documentation and validation

Gain transparency with a solution that is fully transparent and validated, with full technical documentation.

Support and training

Take advantage of end-to-end support covering all aspects of Milliman Agile ALM, as well as the option of customized training to help users deepen their understanding of the underlying models.

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