Economic capital modelling

Overview

Not too much, not too little

In the current economic climate, it is critical that companies have the correct amount of capital on hand: too much or too little can cause excessive costs for insurance or unacceptably high risks for insolvency.

Milliman helps companies implement economic capital models that are aligned with their business strategies, which helps ensure that the decisions they make are founded on a realistic assessment of their available capital and the required capital for any undertaking.

Milliman economic capital modelling

Milliman's economic capital modelling solutions provide organisations with insights needed to understand their business and financial risks to make investment and capital management decisions more confidently. A critical aspect of successfully managing risk is to understand the economic capital requirements necessary to sustain and grow your business. Rapid stress testing and scenario modelling is a component of economic capital modelling and are beneficial ways to view risks with probability distributions utilising multiple parameters.

These solutions provide a greater level of insight into the business and financial risks facing global organisations. In addition, our Economic Scenario Generator with Milliman's hands-on expertise and extensive consulting experience create comprehensive and unique economic capital modelling solutions.

Milliman experts can also help you select the best parameters to generate predictive results and apply those results to more effective business decisions.

Milliman's economic capital model solutions can operate independently or as part of an integrated Milliman enterprise risk management solution.

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