Analytical & Actuarial Services

Whether your business finances its self insured risks via a captive, an internal fund or simply by standard expense management, Aon has the analytical modelling capabilities to help you quantify how much risk you are exposed to. If you understand your risk, then you can make more informed decisions around how to best finance that risk (whether by insuring, self insuring or some other form of mitigation).

Aon's Analytical team has three key value propositions to help your organisation with its risk financing strategy by better understanding and quantifying its risk.

Loss Modelling - a quantitative process, successfully utilised by Aon for many of its clients, that provides the necessary insight into understanding the consequences relating to risk transfer and risk retention due to alternative deductibles.

Key benefits are:

• Lowering Total Cost of Insurable Risk by identifying the most cost efficient deductible, incorporating premiums and retained losses;
• Powerful analysis to assist with insurance market negotiations - ensuring a level playing field with insurance underwriters;
• A robust awareness of retained losses that can assist with internal budgeting and financing decisions, and can even identify areas for risk improvement and further cost savings.

Outstanding Loss Provision - an analysis that will help your organisation accurately provision for the unpaid but existing liabilities of long-tailed risks (such as General Liability, Medical Indemnity, Professional Indemnity or Workers' Compensation).

Key benefits are:

• Ensuring an accurate provision is set that will avoid exposing your organisation to unexpected financial shocks when claims settle, which severely impact the bottom line;
• Assisting your organisation with meeting financial reporting and auditing requirements.

Liability Limit Analysis - a detailed quantitative analysis of 'worst case' scenarios, which provides some scientific credibility to selecting appropriate limits of liability for liability classes of insurance.

Key benefits are:

• A clear audit trail demonstrating that underlying risks are comprehensively understood;
• Confidence in determining whether insurance limits of liability are adequate;
• The potential for substantial premium savings (a recent analysis saved one client more than 25%).