Meet growing needs for innovative insurance solutions while increasing operational health and improving compliance.
Manage complex risks using data-driven insights, advanced approaches, and deep industry experience.
This is a place where your ideas and insights make an impact. Where an independent, entrepreneurial spirit is an advantage. And where diversity of thought and experience makes us who we are.
Data-driven insight. Deep expertise. Transformative innovation. Since 1947, Milliman has delivered intelligent solutions to improve health and financial security.
MG-Hedge® is Milliman's system for risk analysis and market exposure hedging. The core of the system is a market scenario generator that produces thousands of time series paths based either upon a risk-neutral methodology or upon a "realistic scenario" methodology.
First introduced in 1998 and refined many times since then, the system stands out for its ability to perform calculations at the individual policy or loan level. Where other programs typically aggregate data and make broader assumptions, MG-Hedge generates data based on a client's actual portfolio, which can then be used to precisely calculate the optimal course of action.
Our sophisticated modelling—which for any given application might include stochastic volatility and/or stochastic interest rates in a stochastic-on-stochastic framework—allows us to determine clients' best possible hedging strategies.
Milliman has implemented versions of the model that reflect the correlated characteristics of various market risk factors or even multiple economies around the world. This insight gives clients a more realistic view of how market changes will affect their risk profiles and actual trading activities.
MG-Hedge works with Trade Positioning System™ (TPS), a Milliman tool that combines live market data and the output from MG-Hedge to develop hedging recommendations. This tool is also used to track trading. TPS is capable of using both over-the-counter and exchange-traded derivatives for hedging. Together with MG-Hedge, TPS provides a seamless software suite to manage liability risk.
MG-Hedge is designed and supported by an integrated team of software engineers, actuaries, and capital-markets professionals. Our many years of experience managing risk for diverse clients gives us unparalleled insight into how to best use MG-Hedge to achieve each client's objectives.
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