UK-based risk adviser, insurance and reinsurance broker Willis Group Holdings has introduced a new suite of analytical tools, in a bid to allow firms to proactively manage risks.


The new models are said to hold analytical capabilities for diagnosing natural catastrophe risk, cyber risk, directors and officers liability risk and casualty-related losses.

Willis’ new analytical tools include Global Peril Diagnostic, cyber privacy model Privacy Risk and Insurance Strategy Model (PRISM) II, Dynamic Casualty Forecast and directors and officers (D&O) Quantified.

Willis Group risk and analytics group head John Merkovsky said: "Organizations today are facing a rapidly evolving set of risks and risk professionals demand dynamic and innovative tools to diagnose exposures in real time and with analytic exactitude."

The Global Peril Diagnostic will provide a risk evaluation or scoring platform for the entire portfolio and includes a view of the most vulnerable properties across all major natural catastrophe perils, comprising earthquake, tropical cyclone or hurricane, river flood, tsunami and storm surge.

Willis has developed PRISM II based on its original PRISM. It quantifies the impact and likelihood of a privacy breach and enables a client-specific and dynamic view of risk, as well as helps organizations to determine optimal risk transfer strategies and financing limits.

Dynamic Casualty Forecast is a new tool, which offers a complete picture of an organization’s potential casualty losses and the resultant impact on a firm’s financials. It will examine the entire range of resultant total cost of risk (TCOR) and company-specific EBITDA distributions.

D&O Quantified is an innovative predictive model, which assesses a firm’s loss potential related to D&O liability exposures and helps in providing decision support for optimal insurance structures.

The tool is said to integrate client-specific stock price trends, price volatility, corporate governance and accounting metrics, in addition to the valuation dynamics to provide predictive insights into claim frequency and severity.

Image: Willis Building in London. Photo: courtesy of Colin.