A well managed business understands the risks to which it may be exposed and manages them on a daily basis. Organisations finance these risks by either retaining or transferring them and insurance remains a key risk transfer tool. However, ensuring you have quantified the risks appropriately is crucial.
A comprehensive risk analysis empowers you to decide how best to optimise your organisation's risk financing strategy. Buying too much insurance may result in inefficient use of capital; buy too little insurance and an organisation may place its financial viability in jeopardy.
Aon's Analytical Services team has the capability and actuarial tools to undertake an insurable risk profiling exercise to ensure you have the right information to make informed decisions. We can assist your organisation in the following areas:
- Understand your risk tolerance and appetite
- Forecasting retained losses and optimising insurance programs
- 'Worst case' scenario analysis
- Reserving for unpaid losses
- Insurance premium allocation
The benefits of risk analysis:
- Demonstrate good corporate governance through a formal process that eliminates guesswork from insurance / risk management program design.
- Understand the organisation's financial ability and desire to retain risk.
- Maintain a full understanding of an organisation's loss history, and the potential benefits / risks associated with adjusting insurance deductibles.
- Demonstrating to insurers that a sophisticated approach has been taken in its identification and analysis.
To find out more about our global analytics consulting offerings, contact Aon today.