In most cases, the current reserving practice consists of using methods based on claim development triangles for point estimate projections and capital requirement calculations. Taking advantage of the information embedded in individual claims data is a promising alternative to address the need for more accurate models within the reserving practice. This white paper by Milliman’s Laurent Devineau, Fabrice Taillieu, and Alexandre Boumezoued examines the innovative opportunities offered by alternative individual reserving models and the main challenges with their implementation.
National mortality tables are crucial inputs to the quantification of mortality and longevity risks. In the absence of data specific to insured or pension populations, national mortality tables are based on general population data. Recent work by Milliman demonstrates problems with the reliability of these reference tables, including false cohort effects, and offers methodological improvements for their construction. In this paper, Milliman consultants Laurent Devineau, Alexandre Boumezoued, and Dale Hagstrom present both historical perspectives and new solutions to this problem.