Page 10 - WTW Asia Insurance Market Report
P. 10

Risk And Analytics

Organizations today are facing a rapidly evolving set of risks that require
dynamic and innovative tools to diagnose exposures in real time and
alternative solutions to manage emerging risks. Clients are turning to
solutions that enable them to make decisions in order to improve certainty,
build resilience and more effectively manage the cost of risk.

In 2016, clients expressed increased interest in the                SRC enables clients to:
following risk solutions:
                                                                    ƒƒAlign their risk financing strategy with stakeholders,
Alternative Risk Transfer (ART) Solutions that enable
clients to improve profitability, productivity and other financial     business objectives and risk appetite.
ratios by transferring risks for which traditional insurance
markets do not provide efficient solutions.                         ƒƒDetermine the value of money being offered by insurers.

  Some examples of solutions include: Captive Solutions,            ƒƒExplore potentially more efficient risk retention and
  Portfolio Solutions, Structured Insurance Solutions,
  Weather Solutions (Index-based, Parametric-based)                    insurance structures.
  and Capital Solutions.
                                                                    Risk Quantification Tools that combine advanced
Strategic Risk Consulting (SRC) provides bespoke advisory           algorithms, strong data and the clever use of technology
services by combining industry knowledge, risk management           to provide a better understanding of risk and improved
analytical expertise, and insurance broking excellence.             decision making. The tools access global claims
                                                                    databases to not only predict loss potential but benchmark
                                                                    each organisation against global peer performance.

 Likelihood of Risk                                       Complete View of Risk

                              Business as usual risks...            Stressed scenarios:
                              Risk appetite                         Potential failure to thrive

        • Determine risk appetite and risk tolerances                                            Catastrophic scenarios:
        • Define and prioritize key risks                                                         Potential failure to survive
        • Quantify risk severity and frequency
        • Define root causes of risks                                • Define and quantify                                          Cost of Risk
        • Recommend programs to reduce risks                           stressed risk scenarios
                                                                                                 • Quantify catastrophic risks
10                                           • Place optimal insurance    • Customise risk financing solutions
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