Marsh, an insurance broker and risk adviser, has launched Ideal 2.0, a solution that enables risk managers to analyze the severity and probability of securities class action lawsuits against their organizations.

IDEAL 2.0 arms risk managers with required data to guide D&O limit purchasing and retention decisions.

IDEAL (Identify Damages, Evaluate, and Assess Limits) was developed by Marsh Business Analytics, a unit of Marsh dedicated to delivering analytic solutions to clients, and FINPRO, Marsh’s financial and professional liability practice.

Since first introduced in January 2010, IDEAL’s ‘severity’ model has been helping Marsh’s clients project a full range of securities class action settlement outcomes. This is done by using historical settlement data and client-specific independent variables such as market capitalization and total assets.

The company claims that, now, in addition to settlement projections, clients using IDEAL 2.0 also can assess the likelihood that their organization will incur a securities class action claim.