Milliman FRM Thought Leadership
FRM thought leadership
Research
Market commentary: June 2026
Insights into market trends through Q2 2026
Introducing InnovatIV™: A forward-looking volatility control index methodology anchored in option-implied risk
To address the shortcomings of volatility control index product design for index-linked annuities, we introduce a forward-looking methodology anchored in option-implied risk.
Market commentary: March 2026
Insights into market trends through Q1 2026.
Interest rate risk hedging of JPY-denominated insurance liabilities
Our analysis of Japanese life insurers shows a significant expansion in recent years of derivatives as a tool for managing duration exposure.
Complex assets in insurance and annuity industries
Structured credit is no longer a niche allocation for life insurers — it’s becoming core to SAA strategy.
Asset allocations and investment strategies of U.S. life insurers in an inflationary interest rate environment
Since 2020, rising inflation and increasing Treasury rates—now at their highest levels since before the 2008 recession—have prompted insurers to adjust their asset allocations, taking advantage of improved yields from safer private and fixed-income asset classes.
Enhancing SAA outcomes with derivatives: Insights from a RILA case study
We examine three different portfolios within a block of registered index-linked annuities to show how derivatives can enhance outcomes with strategic asset allocation.
Prepayment risk in a VM-22 world: Structural dynamics, scenario behavior, and portfolio implications for life insurers
We consider an insurer's $1 billion investment portfolio to show how the mechanics of prepayment behavior manifest under Virtual Manual (VM)-22.
Market commentary: December 2025
Insights into market trends through Q4 2024.
VM-22 hedging strategies: Risk management and ALM for fixed index annuities
As VM-22 takes effect in January 2026, thoughtful evaluation of hedging strategies can allow insurers to unlock value and better manage risk.