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Redefine risk through risk and analytics

Risk & Analytics|Insurance Consulting and Technology

February 26, 2019

In this evolving market, Willis Towers Watson’s risk and insurance advisory services are now based upon actuarial risk and analytics’ rigour to support all aspects of the client’s insurance procurement process to yield better business outcomes.

2018 is well-framed by more frequent and severe natural catastrophes causing significant correlated impact to many lines of insurance across all major Asian markets. With new and emerging risks on the accelerated rise, now more than ever, clients must look beyond present risks to evaluate costs well beyond mere premium spend. Clients need to know - with certainty - the insurance strategy that is exactly right for their business.

Risk and analytics: A new era of actuarial science-driven insurable risk insights

Willis Towers Watson has developed new and enhanced actuarial-based risk insight tools. These tools are based on Willis’ heritage of using the insurance and alternative markets to protect clients’ assets and Towers Watson’s heritage which is based on an actuarial approach to managing people risk. By leveraging the best of our combined resources, our risk, and insurance advisory services are now based upon actuarial rigour to support all aspects of the insurance procurement process.

This approach is embodied in our Assess | Protect | Recover service plan that complements our traditional broker services.

STEP 1 – ASSESS: What is your company’s underlying risk tolerance and profile?

Assessing this should be the foundation of any risk and insurance strategy. Too often, we hear our clients struggle to quantify the financial impact and likelihood of risks to their business.

We combine the best proprietary risk models with our market knowledge and actuarial approach to create the industry’s leading suite of innovative analytical insurable risk insight tools. These tools access global claims databases to provide clarity around the assessment and benchmarking of all main lines of insurable risk. In this way, our clients better understand the exact nature of the risks they face and can use the insurance market to best effect in the context of their unique risk tolerance.

Of specific interest to our Asian clients is our newly launched Property Quantified tool based on state-of the-art nat-cat models to allow for the visualization and selection of a best fit insurance solution for large, multi-location portfolios. It is the industry’s only scalable model to evaluate both non-cat risks, such as fire, and nat cat risks including earthquakes, wind and floods, and provides the following:

  • An estimation of the expected number of claims and expected annual losses for the portfolio
  • Annual average losses for top locations by peril
  • Stress test for non-cat and cat sub-limits based on peril and/or individual location
  • Applies past nat cat events to current portfolio insurances to stress test response
  • Calculates comprehensive cost of risk (CCOR) to guide risk transfer decisions
  • Compares a limitless range of insurance strategies against the uninsured position to quantify value for money
  • Clearly defines how often a client wins the ‘insurance bet’

To meet our commitment of providing emerging risk insight we further support a network of world-leading scientists in over 50 renowned academic institutions to provide insight into future climatic risks.

STEP 2 – PROTECT: Is your insurance financing strategy aligned with your business objectives and risk appetite?

We supplement our client’s understanding with a full suite of analytical insights that provide:

  • Actuarially calculated ‘technical premiums’ to illustrate the ‘value for money’ offered by insurers.
  • Options to explore more efficient risk retention and insurance structures before approaching markets
  • Optimized insurable strategy for clients’ mono or multi-line insurable risk portfolios

At Willis Towers Watson, we see this type of sophisticated insurable risk insight enable our clients to explore nontraditional risk transfer mechanisms including captives and alternative risk transfer (ART). As a leading ART and captive advisor in Asia Pacific with a full range of solutions embedded into the R&A approach, we successfully combine with our traditional market analysis to ensure that any blended or standalone alternative strategies are perfectly balanced to optimise risk financing strategies.

STEP 3 – RECOVER: Can you further optimize your future business risk and costs?

Beyond the traditional claims management process of our peers, our risk engineers can help with the identification of proximate causes and support physical recovery from an incident. Our forensic accountants can support the assessment and preparation of complex claims, whilst our claims advocates can help handle insurer’s claims experts and, ultimately, work with our brokers to minimize the impact of a claim on future premiums.

How do we redefine risk for our clients? At Willis Towers Watson, the R&A team is made up of a multi-disciplined team of risk experts encompassing risk engineering, forensic accounting, nat cat modelling, captive and ART expertise. This set-up allows us to select the skills to match the needs of each client and embed that into our end-to-end service approach so clients can make the right and optimal decisions on the right insurance and risk strategy for their business.

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