What you need to ask your broker about their analytics and risk modeling

At renewal, the quality of your modeling can directly affect the value you secure from insurance markets. As organizations take a more strategic approach to risk financing and insurance purchasing, their modeling and analytics move to the center of how leaders make decisions.

But not all risk modeling and analytics are equal.

Some models rely on low-level input and generic suppositions. These deliver only high-level outputs or rely on broad assumptions that don’t stand up to scrutiny and may ultimately fail to reflect your organization’s actual risk profile.

Look closer and you may see low rigor analytics presented as robust, making them an unreliable basis for making risk retention and transfer decisions, creating a false sense of confidence when you need long-term risk and resilience. Poor quality modeling can lead to mispriced risk, inefficient capital allocation and suboptimal limit and retention decisions.

As analytics comes to the fore at an organizational level, risk managers need to understand how the modeling and analytics their broker is giving them works. This means taking an active role in understanding the data sitting behind broker outputs and being accountable over how closely it reflects your risks.

When you ask the right questions and test the strength of the analysis, you can make sure your modeling stands up to scrutiny before you use it to guide risk finance strategies and key decisions at renewal.

The questions below aim to help you do just that.

We’ve split these into some core questions, then line-specific inquiries.

Questions to ask your broker about risk modeling and analytics

WTW's Risk and Analytics specialists are ready to answer these questions and more, helping you create cost efficiency and design more resilient, optimized risk programs.