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Loss and insurance analysis for low frequency, high severity events: LossPIQ

Strengthen your organizational resilience and risk governance with our Loss Probabilistic Impact Quantification (PIQ) framework for rare, high impact threats.

Boost your organization’s ability to identify and plan for low frequency, high severity threats. Our actuarial loss forecasting, loss probability and insurance analysis combines with enterprise risk management consulting to give you an in-depth and actionable view of catastrophic scenarios and how to address them most efficiently.

Fortify your value chain and risk posture for long-term resilience and success with our Loss PIQ framework. Our multi-discipline specialists work with you to deliver more panoramic, precise and proactive risk governance.

Loss scenario planning

Identify and quantify emerging risks as well as those materializing over longer time horizons to allocate resources more effectively. You can retain, reduce, mitigate or transfer these exposures more efficiently with our LossPIQ process and outputs.

We support your financial objectives and help demonstrate to both stakeholders and regulators that business leaders are managing material low frequency but high impact and emerging risks.

Our approach doesn’t simply uncover significant threats. Our LossPIQ framework translates quantitative and qualitative risk insight into financial risk forecasts and recommended steps to enhance resilience.

Loss and insurability analysis

Our LossPIQ framework combines actuarial analysis and enterprise risk management consulting to help your risk, treasury, governance and other business leaders answer critical questions on safeguarding your organization’s financial future:

  • Have you identified and quantified all your current and emerging risk exposures?
  • Where should you be directing resources to mitigate against rare but catastrophic events?
  • How prepared are you to withstand unexpected disruptions and what can you do now to strengthen resilience?
  • Are you getting value from your current insurance program and could alternative risk transfer solutions offer better return on investment?
  • Do you have an audit trail on how you identify all material risks to your company’s financial and operational performance?

Project losses and prioritize resources

To help you better manage key risks to your longevity and profitability, our LossPIQ process calls on a range of actuarial and enterprise risk management expertise.

While we provide a tailored process to every organization’s needs, the process typically follows some key steps:

We work with you to define the scope and nature of your key risks and explore how they might crystallize, discussing the likelihood and expected financial impacts of scenarios.

Our quantification of potential losses considers correlations and dependencies between scenarios. We want to ensure your organization is not only prepared for individual risks but also understands their interconnected nature to support more informed and resilient risk management.
Our analysts collaborate with you to determine the most suitable distributions for modeling the risk scenarios and cost components.
We develop actuarial forecasts with varying degrees of probability for each risk sub-scenario and each category of consequential financial impact, both individually and on a combined basis.
We present the results of our Monte-Carlo simulation, which lets us predict the probability of a variety of outcomes, validating the model and reviewing alternative risk management strategies. This comprehensive analysis equips your organization with a nuanced understanding of your key risks and potential financial impacts, empowering you to make informed, strategic decisions.
We provide forecast frequencies and financial impacts to help articulate and segment your risks, providing the basis for effective management and mitigation plans. We then provide clear and actionable recommendations on your insurance arrangements. This insurance overlay provides commentary on the appropriateness of your deductibles, limits and overall risk retention structure relative to your risk appetite. You can share our LossPIQ analysis with insurers to objectively and analytically challenge their pricing and assess value for money.
Our enterprise risk management specialists recommend improvement actions and develop next steps towards greater resilience and a more effective allocation of resources for longevity and profitability.

To better understand and manage the low frequency or emerging risks that could define the long-term success of your organization, get in touch with our specialists to find out more about LossPIQ.

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