Willis Introduces EPIQSM: Innovative New Environmental Risk Assessment Process
New York, NY, September 24, 2008 –
Willis Group Holdings (NYSE: WSH), the global insurance broker, today introduced EPIQSM (Environmental Prospective Identification and Quantification). EPIQSM is an innovative and proprietary process that generates credible loss distributions for environmental risks, even where historic loss data is scarce or not available.
The output from EPIQSM will describe the Average or Expected Loss over time as well as project environmental loss events at high confidence levels (e.g. 1 in 20, 1 in 100 year events etc.). If risk financing is a consideration, the output from EPIQSM can be combined with other Willis proprietary analytic techniques to identify optimal insurance program structures.
By quantifying their low-frequency/high-severity risks, clients gain a more precise understanding of their exposure which allows them to improve the quality of their risk management decisions, increase the efficiency of capital allocations and afford better protection to their corporate reputation.
“In today’s world, management cannot afford to ignore environmental liability – society, investors, regulators and other stakeholders demand transparent disclosure and responsible risk management,” said Michael Balmer, Willis’ North American Environmental Practice Leader. “Our EPIQSM process enables our clients to fundamentally shift their understanding of critical environmental risks from a purely subjective assessment to a credible, analytical measurement. This measurement can form the basis for more informed risk management decisions.”
The EPIQSM process begins with a thorough review of a company’s environmental exposures through a workshop session facilitated by Willis. The consensus-driven data captured during this session is then run through Willis’ proprietary analytical tool, which generates a credible loss distribution. Willis’ quantitative specialists then integrate actual historic and any relevant public domain data to generate a refined and robust quantification of the environmental risks facing the client’s organization.
Willis Group Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 300 offices in some 100 countries, with a global team of approximately 16,000 Associates serving clients in some 190 countries. Additional information on Willis may be found at www.willis.com.