The application is the latest addition to Aon’s suite of analytics offerings, which leverage data to provide differentiated insights, empowering clients to navigate an increasingly complex risk landscape.
The D&O Risk Analyzer offers clients and brokers immediate access to real-time analytics, enabling them to quantify the likelihood and magnitude of potential D&O losses. With data-driven insights on risk retention, risk transfer, and maximizing the value of insurance, the tool allows for dynamic risk modeling. As new client information becomes available, the risk models can be adjusted in real-time, providing updated views of risk.
The application also features advanced risk exposure and loss models, which help users better understand their vulnerability to adverse events, ranging from minor incidents to catastrophic impacts. It allows brokers and clients to explore factors driving D&O litigation and exposure, such as stock volatility, liquidity issues, disputed mergers and acquisitions, and regulatory matters.
Another key feature is the stock price drop analysis, which assesses how various stock price declines could lead to theoretical D&O losses, based on historical settlement data. This analysis provides a critical view of how financial fluctuations might translate into executive risk.
Additionally, the D&O Risk Analyzer includes Total Cost of Risk (TCOR) visualizations, presenting clients with a comprehensive overview of potential insurance options. These visualizations enable clients to explore actionable strategies, optimize insurance limits, and design the most effective insurance programs, ultimately facilitating more informed and communicable decision-making.
The launch of the D&O Risk Analyzer follows the earlier 2024 releases of Aon’s Property Risk Analyzer and Casualty Risk Analyzer, both of which provide exposure visualisations and model potential losses to aid clients in making informed decisions about their insurance coverage.
According to reports, Aon plans to introduce additional risk analyzer tools in the coming months, all designed by Aon’s Risk Capital and Human Capital teams in collaboration with Aon Business Services. These tools are aimed at providing actionable insights that give clients greater control over the structure of their insurance programs.
Commenting on the move, Timothy Fletcher, CEO of Aon’s financial services group: ““Rising litigation and defense costs, equity market volatility and shifting regulatory frameworks have added complexity for corporate officer risks. It is more important than ever for risk managers to assess D&O liability and the role of insurance in protecting public officers and board directors. Our D&O Risk Analyzer, together with Aon’s brokers, provide a holistic analysis of the D&O risk landscape, helping clients make better decisions.”
Joe Peiser, global CEO of Commercial Risk Solutions for Aon, said: “Aon’s D&O Risk Analyzer exemplifies our firm’s commitment to serve clients as they make data-informed decisions.”
He added: “ As the risk landscape grows more complex, we will continue to provide actionable analytics solutions that enable our clients to confidently assess risks and insurance offerings.”
