Integrate


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Regulatory requirements are transforming the insurance industry—compressing reporting timelines and multiplying the number of projections required. Matching actuarial workflows to increasing regulatory demands and product complexity is a critical concern that requires an entirely new approach.

An industry facing unprecedented challenges

Existing actuarial processes do not allow actuaries to keep pace with the increasing complexity of insurance products and regulations. Companies spend weeks or months updating, executing and analysing models. You cannot scale manual work and you cannot scale a fixed infrastructure, so revolutionary changes are required to address these fundamental challenges.

A workforce constrained by legacy infrastructure

Currently, tasks such as updating models, refreshing assumptions, creating liability and asset inforce files and manipulating results files eat up nearly 70 percent of an actuary’s time. That’s a critical opportunity cost for companies that need to compete for increasingly scarce, high-level talent in a challenging global economy.

Actuaries should be focused instead on analysing results and creating value for the company, not worrying about massaging data and managing reporting systems.

Integrate: A single solution, built from the ground up

Integrate® takes a uniquely holistic, forward-looking approach to the automation and governance of actuarial modelling and reporting. Built around MG-ALFA, Milliman’s industry-leading financial modelling system, and powered by Microsoft Windows Azure, Integrate represents a reimagining of the relationship between people, processes, and technology. Launched in 2012, it is the first industrialisation solution that is proven to manage risk, maximise efficiency and unlock the full potential of the actuarial staff.

Talent no longer isolated in silos

The Integrate platform is managed in Microsoft’s Windows Azure cloud. This allows every actuary simultaneous, real-time access to the model. So rather than 40 actuaries making changes to discrete portions of the model in desktop-bound sequestration and then struggling to reassemble all 40 pieces back together into a working model without errors, now all 40 can be working in the cloud on the same model simultaneously. Moreover, any changes that need to be validated by other actuaries can be accessed through a browser—permanently retiring the practice of trafficking spreadsheet files over email or other means.

  • Ultra-scalable processing. Through Integrate, insurers tap as much computing power as they need, anytime. That translates into dramatic time efficiencies, cost efficiencies (paying only for what you use) while enabling supercomputer-like calculation intensity.
  • Better deployment of highly skilled talent. Integrate frees up untold numbers of man hours of highly skilled actuaries by eliminating low-level processing tasks and the manual processes that accompany them. Less time spent on data management means more time spent on analysing that data, and higher yields on business intelligence.
  • New competitive advantages. Companies are more agile and responsive, thanks to improved capital management capabilities. Although insurers need to meet quarterly requirements, market factors and other external pressures can affect the capital position every day. With Integrate, actuaries can evaluate real-time changes in market conditions on their capital position—in just a few hours.

Unprecedented results

In a large project for the Phoenix Group, the benefits of Integrate were dramatic: time to produce quarterly results was reduced 97.5%. Person hours to produce quarterly results were reduced 95%.

Other industrialization approaches look at parts of the puzzle—the systems, the people, or the processes, but not the holistic modelling environment. Integrate brings one unified solution to the table. The results are unlike anything seen before in the insurance industry.

 
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It's time to rethink the system. Rethink the tools.
Actually, rethink everything.

See how  

DOING TOO MUCH BY HAND

Desktop software and hardware still dominate the actuarial modeling environment. Almost all companies currently input assumptions manually into actuarial models.

How data is fed into actuarial models

 
 
 
 
 
 
Source: "Actuarial Modeling Controls," Society of Actuaries survey, 2012
 
 

A REVOLUTIONARY SOLUTION

  AUTOMATE
 
  ENRICH
 
  COLLABORATE
 
  COMPLY
 
  SCALE
Integrate replaces patchwork systems and processes with a unified modeling environment that runs in the cloud
The first solution with comprehensive and unified automation
  • Automate the modeling workflow, the governance, and control of assumption management
  • Produce a range of actuarial analyses quickly and efficiently
  • Spend more time analyzing results
 
Optimize talent
  • Free up high-value resources for strategic thinking
  • Eliminate low-level tasks and manual processes
  • Gain more time to analyze model results
  • Spend less time on data and model management
 
An enhanced, collaborative way to work
  • Collaborate simultaneously on all elements of the process
  • Get secure, private, real-time access
  • Use a common model and workspaces to streamline workflow
 
Meet requirements
  • Satisfy all audit, governance, and control requirements
  • Model hundreds of thousands of new scenarios each quarter
  • Provide for reproducibility, auditability, business continuity, and disaster recovery
  • Govern model development updates with source control, release management, and a document repository
 
Ultra-scalable computing capacity
  • Access unlimited computing resources to perform compute-intensive, mission-critical work
  • Free up IT staff from managing infrastructure
  • Pay only for what you use to save money
 
 
 
 
 
 
 

HOW INTEGRATE WORKS

 
Milliman Data Exchange Interface
 
Integrate Model Development
Integrate Financial Projections
Integrate Compute
 
 
 
The Integrate environment contains three key components that manage risk, maximize productivity, and unlock the full potential of the actuarial staff.
Integrate Model Development

Define workflows around model updates and provide a complete audit trail of all changes made within the collabortive environment.

  • Manage and govern development and ongoing customization
  • Use collaboration tools for developers, testers, and managers to facilitate and govern model development
  • Control release management, enhancement requests and bug tracking
  • Source control system and repository for actuarial formulas
 
Integrate Compute

Access supercomputer-like calculation intensity whenever you need it—translating to dramatic time and cost efficiencies.

For example, Integrate Compute will request from 0 to 10,000 engines to process all financial reporting results in as few as two days.

  • Requests the engines in Microsoft Azure
  • Distributes the projections accordingly
  • Powers down the engines when the job is complete
 
Integrate Financial Projections

Use automation to deliver a common, reusable workflow for rapid, precise calculations

  • Governance and control of assumption management
  • Collaboration across all aspects of model management
  • End-to-end process from policy administration system extract to final reporting
 
 
 
 
 

CASE STUDY: INTEGRATE IN ACTION

Milliman helped The Phoenix Group transform their manual, redundant and isolated processes into a holistic, automated modeling environment.

 
Before
 
After
 
 
Models
 
77
77
 
1
1
 
97.5%Faster quarterly results
 
Fund-specific methodologies
 
Hundreds
Hundreds
 
1
1
 
Manual processes
 
900
900
 
44
44
 
95%Reduction in man-hours required
 
ICA production time
 
4 months
4 months
 
3 days
3 days
 
Video >
 

CASE STUDY: INTEGRATE IN ACTION

"For us, transforming to one actuarial system was absolutely essential to achieving better synergies."

- Andy Moss

Finance Director, Phoenix Life

 
 

A PROVEN CLOUD PLATFORM YOU CAN TRUST

Underlying the unprecedented performance and scalability of Integrate is the Microsoft Azure cloud.

 
 
 
 
 
 
 

Microsoft Azure is a reliable, secure cloud that provides:

  • The compliance you need
  • Automated operating system and service patching
  • Modeling processes that run securely on compute nodes
  • Secure and private data storage
  • The deletion of modeling results after successful transformation
 
Learn More >  
 
 

The remarkable performance of Integrate is made possible by the Microsoft Azure Cloud:

  • Powerful, secure, and cost effective
  • Streamlined implementation
  • Reduced capital investment
  • Disaster recovery support
  • 24/7 system-wide monitoring, including real-time fault detection and monitoring
 
Share >Contact Brian Reid >  
 
 
 

THE CLOUD GIVES YOU OPTIONS

From benefits like scale and efficiency, to platform options that suit your business needs.

 
 

IaaS
Infrastructure compute resources, complemented by storage and networking capabilities, offered on-demand

Cloud computing
Makes software and other technologies available anywhere, anytime

SaaS
Software that is owned, delivered and managed remotely by a solutions provider on a pay-for-use or subscription basis

 

To learn more, email integrate@milliman.com

www.milliman.com