Willis Towers Watson has launched an innovative risk advisory service to help chief financial officers and risk managers reduce volatility and minimize their total cost of risk.
The new Connected Risk Intelligence identifies how to take advantage of market inefficiencies, helping clients to optimize the balance between retained and transferred risk across a broad range of exposures that affect their business.
It has been built around IGLOO, one of the leading proprietary decision support systems to the insurance sector.
Kevin Snowdon, regional director at Willis Towers Watson for risk and analytics in Asia, emphasized the importance of being able to better understand risk at a portfolio level.
“With the challenging environment today, the ability to combine analytics with industry data to better understand risk at a portfolio level is of upmost importance. This deeper understanding of the correlations of risk, especially for large and complex risk portfolios, helps organizations to identify better ways to reduce volatility by leveraging the benefits of diversification,” Snowdon said.
“It provides a decision framework for companies to select alternative strategies to dynamically respond to the ever-changing business environment. This optimization can lead to a 10 to 30% reduction in risk and/or insurance cost savings per year.”
John Merkovsky, head of risk and analytics at Willis Towers Watson, added that the new service can provide clients certainty that their risk strategy is exactly right for their business and that they’re paying precisely what they need to allow effective capital deployment elsewhere.
“’Today’s risk manager and CFO have only been able to view risk financing as individual transactions, compartmentalized by line of business,” Merkovsky said.
“Connected Risk Intelligence is a combination of advanced modeling technology and our own optimization expertise which will revolutionize the way organizations view risk management. By using Connected Risk Intelligence, we can help clients identify the combination of solutions that move their overall risk finance portfolio to the Efficient Frontier and exploit arbitrage opportunities along the way.”
Connected Risk Intelligence is available for large corporate clients with complex risk portfolios.a