Category Archives: News

Infographic: What a private flood insurance market could look like in Florida

In the aftermath of Hurricanes Harvey and Irma there’s been increased public attention to both government-sponsored flood insurance (the National Flood Insurance Program, offered through FEMA) and the potential rise of a private flood insurance market. In Florida, a recent analysis by the Associated Press found that of the state’s 38 coastal counties, only 42% of homes are covered by flood insurance. The same analysis found that of the roughly 2.5 million homes in Special Flood Hazard Areas, Florida’s overall flood insurance rate for hazard-zone homes is just 41%.

Flood risk continues to be one of the most difficult perils to price for the homeowners industry. More than any other catastrophic peril, flood risk varies over short distances; critical factors that contribute to flood risk include elevation, relative elevation, distance to coast, and distance to river. This spring, Milliman, along with risk modeling firm KatRisk, sought to independently model the feasibility of a private flood insurance market in Florida, Texas, and Louisiana. The infographic below provides some of our findings for all single-family homes in the state of Florida:

Lisa Henderson joins Milliman as InsurTech strategist

Milliman today announced that the firm has hired Lisa Henderson as Chief Strategist, Casualty Products and InsurTech Consulting. Henderson has more than 20 years of executive management experience in technology companies, serving as CEO of Princeton Softech (acquired by IBM) and as EVP of sales and marketing for DFA Capital Management (acquired by Conning Asset Management). Henderson is also a previous E&Y Entrepreneur of the Year.

“Milliman has deep roots in insurance and has been a leader in bringing cloud computing and advanced analytics to insurers,” says Henderson. “The firm’s entrepreneurial culture continues to generate innovative technology with the potential to enable new efficiencies for the claims and customer acquisition units. And Milliman’s cupboard is fully stocked with exciting technology that can transform and, in some cases, disrupt business as usual.”

“We’re thrilled to have an executive of Lisa Henderson’s stature joining the Milliman team,” says Brian Brown, Milliman’s Global P&C Practice Director. “Our experts have devised some incredible technology and now we have the leader in place to grow into the exciting InsurTech market.”

To read Milliman’s InsurTech research, go to www.milliman.com/insurtech. To subscribe to Milliman’s InsurTech updates, email InsurTech@milliman.com, or follow Milliman at www.twitter.com/millimaninsight.

Milliman consultant makes Captive Review Power 50 list

Milliman’s Mike Meehan was named to the 2016 Captive Review Power 50 (subscription required). The Power 50 is a ranked list recognizing the 50 most influential professionals in the global captive insurance industry.

“I am honored and humbled to have my name included among this group, which contains so many individuals for whom I have the utmost respect,” he said about the distinction.

A.M Best recently interviewed Mike from the 2016 Cayman Captives Forum about the domicile’s captive market. He’ll be a speaker at the upcoming CICA Conference in San Diego from March 12 to 14. For more information, click here.

Milliman opens new office in Malaysia

Milliman has announced that it will open an office in Kuala Lumpur on March 1, 2016. The Kuala Lumpur office will offer employee benefits, life, nonlife, and health insurance consulting services. Milliman has two other offices in South East Asia—in Jakarta and in Singapore—and now 12 in total in the Asia-Pacific region.

Steve White, Milliman chief executive officer (CEO) and president, says, “The opening of the Kuala Lumpur office continues Milliman’s expansion into South East Asia. Our newest location enhances our ability to deliver Milliman’s unique expertise in insurance and employee benefits to the Malaysian market.”

Richard Holloway, Milliman managing director, South East Asia & India, Life Insurance, says, “Our third office in South East Asia will complement our other locations in the region. With the opening of the Kuala Lumpur office, we are better positioned to serve both our multinational clients and our local Malaysian clients, working for both life insurance and family Takaful companies.”

Pang Chye, who leads Milliman’s Health and Nonlife Insurance consulting practices in Greater China and South East Asia, said, “We see a lot of development and plans to liberalise the market in Malaysia, such as the impending motor rate detariffication, and the vibrant dialogue between health insurers and healthcare providers. We continue to help our clients in Malaysia adapt global best practices to the Malaysian environment and are reinforcing our commitment by adding Kuala Lumpur to our network of offices across Asia.”

Danny Quant, Head of Employee Benefits, Asia and Middle East, added, “There’s growing need for employee benefit consulting in Malaysia. We are thrilled that Milliman now has a Kuala Lumpur office from which we can answer that need.”

Bankers Insurance Group becomes latest property and casualty insurer to adopt Milliman competitive intelligence tool

Milliman today announced that Bankers Insurance Group has adopted Pixel™, a competitive intelligence tool for property and casualty insurance companies. Since launching in May, Pixel has provided a unique advantage for companies participating in the highly competitive and evolving Florida insurance market, and Pixel will soon be available in other states.

Pixel is a web-based, interactive platform designed to give marketing executives, product managers, and actuaries a comprehensive and customized view of the market. Companies can view their own data in Pixel, or they can license Milliman’s market baskets, which include competitor premiums for hundreds of thousands of policy profiles calibrated to represent various state markets.

“Our product managers are already reaping the benefits of this tool. It provides valuable insight to the market that allows us to target areas to grow our business where our rates are positioned well in the market while maintaining profitability” said Judy Copechal, President of Insurance at Bankers Insurance Group.

“Pixel is helping companies get ahead in the challenging Florida market,” said Milliman Principal Nancy Watkins. “These insurers face intense competition for market share and many stresses to their bottom lines. In this kind of environment having the best information makes all the difference, which explains the growing popularity of Pixel. In December alone, three insurers licensed Pixel.”

Pixel applies advanced data visualization and machine learning techniques behind the scenes in an easy-to-use tool that analyzes premiums for a given company relative to the competition. Users can filter markets by geography and type of risk, and drill down into the variables that most affect their competitive positions. Results are output in user-friendly data sets, charts, and maps that can easily integrate with other software. This information is useful not only in setting premiums, but also in arming agents with valuable insight and in supporting the regulatory process.

To read more about Pixel, click here.

Milliman promotes Halim Gunawan to country manager for Indonesia

Milliman announced that Halim Gunawan, a consulting actuary in the Jakarta office, has been promoted to country manager for Indonesia. His new responsibilities include local management of all of Milliman’s core consulting lines: employee benefits, life insurance, nonlife insurance, and healthcare.

Halim, a fellow of the Actuarial Society of Indonesia, has been with Milliman since July 2013. He has over 15 years of experience in employee benefit and actuarial consulting.

Richard Holloway, Milliman managing director, South East Asia & India, Life Insurance, says, “We see tremendous potential to expand our life insurance consulting capabilities in the Indonesian market. Halim is a seasoned practice leader and was the obvious choice for this expanded role.”

Danny Quant, Head of Employee Benefits, Asia and Middle East, says, “Halim’s promotion is a natural progression of his role after Eldridge Consulting was acquired by Milliman in 2013. Under Halim’s leadership, our practice in Jakarta has evolved into one of Indonesia’s leading benefits consulting businesses.”

Pang Chye, who leads Milliman’s health and nonlife practices in Greater China and Southeast Asia, adds, “Halim will help drive further expansion of our services to the health and nonlife insurance industry, where we are already leaders in Asia.”

Steve White, Milliman’s president and chief executive officer (CEO), says, “Halim has built a tremendous practice and is the natural leader to advance our presence in Indonesia in our other core practice areas.”

Halim will continue to be based in Jakarta and will oversee 22 employees.