Willis Towers Watson launches new Risk & Analytics tool for Trade Credit

LONDON, December 21, 2021 - Willis Towers Watson (NASDAQ:WLTW), today announced that it has launched a new Risk and Analytics model for the trade credit market.

The model analyses clients’ trade receivables to predict potential losses over a range of statistical scenarios. A typical model run covers:

• Rating and spread of risk on an aggregate portfolio, region, trade sector and individual buyer basis
• Probability of Default Loss Forecasts on a portfolio basis
• Breakdown of risk exposures by sector and geography
• Fully customisable credit insurance Return on Investment (ROI) calculations examining the cost of Premiums against sales and projected losses

By identifying the unique frequency and severity of potential credit risk losses within a firm’s receivables portfolio, the model takes a data driven approach to help clients design and structure the most appropriate solutions to help grow sales securely and with confidence.

The model has been designed as a tool for both newcomers to Trade Credit Insurance as well as seasoned users including but not limited to:

• Private business-to-business forms trading on open account terms
• Financial Institutions evaluating receivables connected to a borrowing base, receivables purchase program or securitization
• Merger and Acquisition activity to evaluate the risk within a target company’s receivables asset

Scott Ettien, Executive Director Willis Towers Watson, said “Willis Towers Watson has a long track record of success in using our R&A platforms to drive additional lines of business by bringing a data-backed analysis to our client’s attention. Our model helps organisations to understand further how Trade Credit insurance can be viewed as a viable risk transfer vehicle for capital substitution.”

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential.