Milliman is very good at providing professionals the best possible environment in terms of its knowledge base, its access to what is being developed all over the world, and its encouragement of its consultants to provide top-level consulting services anywhere.
What we find is that there is a gap in the world at this moment between the software tools that are available for large multinational companies and what is available for domestic companies. At Milliman, we try to fill that gap. We have two lines of software development. One line is for administration of universal life products and the second line is for analysis of data and predictive modeling with the special goal of serving the companies of Latin America.
The level of sophistication of companies in Latin America differs a lot. You have multinational companies with global standards, many of them in Argentina, that follow in general terms what is being done in the U.S. or in Europe in terms of pricing, reserving, how they view the market, and how they view the business. On the other hand, you have other companies in which the knowledge is not that widespread. It’s very challenging to work with different views of the business. It’s a struggle for insurance companies to compete in the market with different views, and one of the tasks now is helping companies come to a common view of an acceptable level of risk.
There’s a need to develop products specifically for consumers in Latin America, and Milliman is helping companies do that.
Product development is a key issue. On the P&C side, the need for better segmentation and for better analysis of the risk and the costs of insurance are key issues in the Latin American market. There has been improvement in the market during the last few years, but in general terms, that market is still in need of better analysis, which is where we come in.
Employers in Latin America are beginning to understand the value of providing benefits to employees. It differs a lot in each country. For example, in Mexico and Brazil, the pension benefit is beginning to become standard. In Argentina and Chile, it’s still a developing market.
It is important for our employees to understand that we as actuaries are part of a process that ultimately has to do with the management of risk.
Milliman has a variety of needs, so different types of professionals can find a place in our organization. For example, we need people with good management skills and an understanding of the business of our clients because we provide strategic consulting. We also need people with good technical skills and those interested in developing software.
We look for the best people: They have to be good professionals with a strong understanding of the need for high quality work and a commitment to clients.