Aon Tool analyzes and quantifies potential D&O losses

Corporate risk managers looking to assess the likelihood that their directors and officers will be sued and how much it might cost have a new digital tool to help.

Global insurance broker Aon has launched its Directors and Officers (D&O) Risk Analyzer, a data-driven application that enables risk managers of US-listed public companies to mitigate the executive risks facing their directors, officers and businesses .

“Rising litigation and defense costs, equity market volatility and changing regulatory frameworks have added complexity to corporate officers’ risks,” said Timothy Fletcher, CEO of Aon’s financial services group. “It is more important than ever for risk managers to evaluate D&O liability and the role of insurance in protecting public servants and board directors.”

The tool enables real-time loss forecasting to iterate and quantify D&O risk exposures and loss scenarios, which Fletcher says allows risk managers and brokers to have discussions about the extent of potential risk. Aon says this elevates focus “beyond expected losses” and empowers risk managers to “better communicate risk retention and risk transfer options to the C-suite.”

Fletcher said the D&O Risk Analyzer, together with Aon’s brokers, provides a “holistic analysis of the D&O risk landscape, helping clients make better decisions.”

Aon’s D&O Risk Analyzer gives clients and brokers access to:

• Real-time analytics that help clients quantify the likelihood and magnitude of potential D&O losses with data-driven insights on risk retention, risk transfer and insurance value maximization. Risk models can be adjusted in real-time based on new customer information to provide revised insights into risk.
• Risk exposure and loss models that provide a better understanding of exposure to adverse events, from low impact to catastrophic. Brokers and clients can explore the factors driving litigation and D&O exposure (including stock volatility, liquidity issues, litigious M&A and regulatory matters).
• Stock decline analysis, which measures how varying customer inventory declines can lead to theoretical D&O losses based on historical settlement data.
• Total Cost of Risk (TCOR) views of all potential customer insurance options that help customers explore actionable options to determine value, optimize limits and design the best potential insurance programs in the market, enabling not only better decisions, but also the ability to communicate better. those decisions.

The launch of Aon’s D&O Risk Analyzer follows the 2024 debut of the company’s Property Risk Analyzer and Casualty Risk Analyzer, which provide exposure visualizations and model potential losses.

Aon said it will unveil additional risk analysis tools in the coming months.

TOPICS
Loss of profit InsurTech Tech Aon