SEATTLE, Dec. 20, 2010 /PRNewswire/ -- Milliman, Inc., the international firm of consultants and actuaries, today announced that it has developed key support functionality for clients who participate in the NAIC impact study on proposed changes to VM-20 to support a principles-based approach to reserves. Numerous MG-ALFA clients are participating in the study and they will use the new functionality to determine and report the impact of the changes.
At the core of the new functionality is the Net Premium Reserve methodology that was recently finalized as a part of the proposed changes to VM-20. Existing functionality that was developed for C3 Phase II and VACARVM complements the new capabilities and will allow MG-ALFA clients to calculate the required reserve values, including the Stochastic Reserve and the Deterministic Reserve. Van Beach, MG-ALFA Product Manager, says "The Impact Study is an important step towards the industry adoption of principle-based reserves. We are committed to enhancing MG-ALFA to provide principle-based reserve support – both as a valuation system, as well as for forecasting principle-based reserves." As the study progresses, Milliman will respond with additional functionality as needed.
In conjunction with the release of the new functionality, Milliman will organize regular user group meetings for the companies that participate in the study, allowing the participants to share their experiences and findings with their peers and to provide feedback to Milliman on their use of MG-ALFA to meet the new requirements.
MG-ALFA is financial projection software developed and supported by Milliman and used by leading life insurance and financial firms worldwide to perform financial projections. MG-ALFA supports a broad range of assets and liabilities and delivers functionality for the complete spectrum of actuarial modeling needs, from pricing and ALM projections to stochastic and nested stochastic analysis. MG-ALFA is uniquely positioned to meet emerging regulatory and accounting changes around the globe and offers multiple grid computing solutions to deliver the speed and capacity necessary to meet all requirements in a practical timeframe.
Milliman is among the world's largest independent actuarial and consulting firms. Founded in Seattle in 1947 as Milliman & Robertson, the company currently has 54 offices in key locations worldwide. Milliman employs over 2,400 people. The firm has consulting practices in healthcare, employee benefits, property & casualty insurance, life insurance and financial services. Milliman serves the full spectrum of business, financial, government, union, education and nonprofit organizations. For further information, visit www.milliman.com.
SOURCE Milliman, Inc.