Tag Archives: Josh Corrigan

Milliman ERM 3.0

The next phase of enterprise risk management (ERM) involves embedding risk management throughout a company to inform its critical decision-making processes. In this short film, Josh Corrigan explains how Milliman’s holistic approach to helping organizations prepare for “ERM 3.0” draws on a unique understanding of complex systems and behavioral science.

To learn more about Milliman’s ERM services, click here.

Milliman’s top 10 publications of 2013

In 2013, Milliman again published a wide variety of articles and videos, including timely analysis related to issues such as sinkhole peril, improving claims analytics through text mining, predictive modeling and analytics, and Solvency II developments. In addition, we published extensively on ongoing challenges related to managing healthcare costs, healthcare reform, retirement planning, and insurance and risk management issues.

Here are this year’s ten most viewed articles and reports:

10. Fees: What everyone is NOT talking about!
By Douglas A. Conkel

How do plan sponsors ensure that actual fees paid by each participant are fair and reasonable when compared to other participants within the plan?

9. Planning for NAIC ORSA
By Chris Suchar, Joy A. Schwartzman, Matthew G. Killough, Wayne E. Blackburn

Sophisticated risk assessment will be key to complying with U.S. ORSA requirements.

8. Operational risk modelling framework
By Joshua Corrigan, Paola Luraschi

Current methods and emerging practices in operational risk across the world.

7. ACA: An act of unknown consequences for workers compensation
By Derek A. Jones

How will healthcare reform mandates for preexisting condition coverage and broader healthcare access affect workers’ compensation claims and costs?

6. President Obama’s transitional policy for canceled plans
By Hans K. Leida

The November 14, 2013 announcement that health insurance issuers would be permitted to renew certain canceled health insurance policies has raised new questions for the individual and small group marketplaces in 2014.

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Can loosening Australia’s investment rules help people reach their retirement goals?

Asset Financial Review recently organized a panel of retirement experts to discuss how easing Australia’s asset allocation rules may produce better investment results for individuals. Milliman’s Joshua Corrigan was among the panelists. In the video below, he talks about risk management’s role within the investment process.

Here is an excerpt of the discussion from Asset’s article:

Josh, from an actuarial perspective, does it look as though investors are too hopeful?

Joshua Corrigan: The whole industry has been developed on the basis of having this notion of this ultimate wealth goal that should be driving all of our objectives, and it’s just not right. As soon as someone moves into retirement, they don’t really care what their total wealth is; what they really care about is what their lifestyle is and what their needs are around retirement. So when you’re trying to structure investment solutions to meet those needs, the key is not just the transition from the wealth objective to the income objective but to think about the risks of changing between those two aspects. At the start of retirement you don’t have much capacity to take on a lot of types of risks.

…The risk management process is finally starting to be put at the heart of the investment process. For way too long it’s been seen as almost a compliance box-ticking exercise. We need to make a clear distinction between managing the risks people already have versus giving them exposure to other risks that we want to achieve attractive risk-adjusted returns from. It’s starting to change now and get to the hub of: what are your objectives, and let’s think about risk with respect to those objectives. If you deliver them a solution that meets their risk requirements and objectives, it doesn’t matter that they don’t get the 2 or 10 extra per cent because they missed out on an equity bull run.

For more Milliman perspective on risk management, click here.

Milliman on ERM: Partnering with the experts

Milliman’s strategic alliance with Reunion Asia Pacific is helping energy companies in Australia and New Zealand address their enterprise risk management (ERM) needs.

In this video, Milliman consultants Joshua Corrigan and Neil Cantle, as well as Reunion Asia Pacific cofounders James Moulder and Stephen Batstone, discuss why risk mitigation is absolutely fundamental in these energy markets. They also discuss how the partnership between Reunion, which provides expertise in electricity, and Milliman, which provides expertise in risk management, helps clients solve problems.

The enterprise risk management journey

In this short film, Milliman principals and consultants Neil Cantle, Paola Luraschi, Stephen Conwill, Laurens Roodbol, and Joshua Corrigan discuss how Milliman’s breadth of expertise spread across the globe can guide organizations on their enterprise risk management (ERM) journey, from creating an enterprise risk management framework to implementing recommendations, organizing the compliance function, and creating reporting tools.

To learn more about Milliman’s ERM solutions, click here.

A risk management approach to investment portfolios

A paper by Milliman’s Joshua Corrigan and Innova Asset Management’s Daniel Miles suggests investment portfolios modeled on managing risk factors may yield better results than traditional 60/40 portfolios. Investor Daily highlighted the new approach in a recent article.

Here is an excerpt:

When it comes to the long-term risk allocation of a 60/40 fund, around 51 percent of the portfolio is tied to economic growth risk and 27 percent is in inflation risk, according to the paper.

Instead, investment managers would be better served spreading their risk evenly among 10 factors, including: economic growth; valuation; inflation; liquidity; credit; political risk; momentum; manager skill; option premium; and demographic shifts.

“The only real insurance against black swan events, big regime shifts and large drawdowns is to seek out multiple sources of risk premia across a host of asset classes,” according to the paper.

“Allocating capital across asset classes and investment styles represents superficial diversification if payoffs are exposed to the same set of risk factors,” it said.

The entire paper can be read here.