Risk and Insurance Optimization

Analytics in risk management is no longer a 'nice-to-have'. Today, it is essential to push risk and insurance budgets to deliver value.

More risk managers recognize that without insight from data and analytics, they could be leaving money on the table. And if you don’t know whether you’re getting best value from your risk and insurance approach, stakeholders could challenge your decisions.

But exactly how can you use analytics to find the right tradeoffs between transferring and retaining risk, and the optimal limits and deductibles for your insurance program? 

We can help.

Wherever you are in your risk management journey and wherever your risk lies, Willis’ Risk and Insurance Optimization aims to enhance the outcome.

You can enter our consulting framework at any of the four modules:

1. Clarify your risk tolerance

Ensuring your risk management decisions support your organization’s financial priorities means getting a clear view of your risk tolerance. You can better understand your financial vulnerabilities and uncover your strengths with Risk Tolerance Clarified from Willis. 

What do your financials say about your solvency potential, earnings power and how you’re using your cash flow? What level of loss would undermine your financial resilience? Risk Tolerance Clarified empowers you with the answers, helping align your risk management strategy with the financial priorities of the business. 

Risk Tolerance Clarified

Provides a customizable financial benchmarking package for creating risk tolerance statements.

2. Identify all of your risks

Extend your internal risk management function and identify risk exposures, risk control effectiveness and risk transfer needs with our enterprise risk management (ERM) approach tailored to your risk priorities. This process identifies, evaluates and prioritises the key risks to the business.

3. Quantify your risk using powerful risk analytics

How can you know when your insurance strategy is paying off? Willis’ Dynamic Total Cost of Risk (TCOR) platform delivers actuarial probabilistic models precisely tailored to your risk profile, considering both company loss and exposure data as well as wider market data. Our models reveal what losses look like in typical, bad and catastrophic years and test your retention and programme design options.

Dynamic TCOR can model expected, retained and ceded losses for all major coverages within your insurance portfolio. The proprietary risk-specific models by Willis simulate loss outcomes at the full range of likelihood levels, demonstrating potential TCOR volatility and empowering you with the insight to fully evaluate your risk and insurance strategy for value and effectiveness.

Dynamic TCOR

Dynamic TCOR presents a holistic, concise view of your total cost of insurable risk (TCOR) across all classes of insurance.

4. Optimize your risk portfolio

If you’ve already mastered your risk tolerance, identification and quantification, Connected Risk Intelligence provides confidence your risk strategy – for both insurable and uninsurable risks – is right for the business. We identify the most efficient risk financing strategies, with risk exposure within stated tolerance levels while spending precisely what you should to protect the business and no more.

Use Connected Risk Intelligence to reduce spend, optimize your risk finance decisions and reveal the rationale for releasing risk capital to deploy elsewhere in the business.

You can remodel rapidly to explore the impact of risk mitigation measures and use Connected Risk Intelligence to optimize a single risk or your entire portfolio.

Connected Risk Intelligence

The key to an optimal risk financing strategy is to consider risks in portfolio. Reveal the path to the efficient frontier of risk finance.

Is the Risk and Insurance Optimization pathway right for you?

Do you want to: 

• optimize your insurance spend through effective allocation of your risk capital?
• take control by presenting your risk and mitigation measures to the market more compellingly using data, analytics and actuarial modeling?
• enhance your risk governance with tools that generate audit trails?
• easily align finance strategies with business priorities?
• lean on global expertise with local knowledge at whatever stage in your journey you’re on?

Risk and Insurance Optimization experts at Willis

Our global team is wholly dedicated to improving client outcomes, drawing from expertise that includes technologists, actuaries, forensic accountants, engineers, and claims and captive experts. Together, they deliver a fully integrated approach to meeting your risk management and risk finance needs. Get in touch to find out more.