LONDON, 15 June 2009 Aon Global Risk Consulting, the world’s leading risk adviser and insurance broker, is launching its Risk Financing Decision Platform (RFDP) in Europe to help companies save companies up to 15% off their total cost of risk* and justify the risk financing programme to the board. The process will help businesses decide how much risk to retain – through deductibles or captives, for example – and how much to transfer to the insurance markets – to optimise the risk financing spend in the long term.
RFDP uses a three-pronged approach, linking:
Following the analysis, companies can view how the total cost of risk could be split differently with cost/benefit analysis for each of the potential insurance options. At the same time, the platform produces a report that can be shared with board to justify insurance decisions and keep in line with corporate governance.
Martin Massey, head of business development at Aon Global Risk Consulting, said:
“We’ve used the platform for over 50 clients in the US and on average, by linking actuarial modelling to company financials and the risk transfer marketplace, we’re seeing our clients save between 5-15% on their total cost of risk.
“The RFDP process helps support the risk manager both in providing a framework to evaluate strategic alternatives but also in justifying to its stakeholders that its risk financing programme adds value and is cost effective.”
* Whilst every business will define its total cost of risk in its own way, all are ultimately aimed at measuring the fundamental cost that risk represents for a business and should include: the cost of retaining risk, the cost of transferring risk (through instruments such as insurance) and the expenses associated with risk management. This should be achieved without significantly increasing volatility.
About Aon Global Risk Consulting
Aon Global Risk Consulting has over 500 risk control and engineering professionals in 30 countries to support clients in the property and casualty risk control arena, with solutions including underwriting surveys, risk improvement strategies, health and safety, ergonomics and claims defensibility.
Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 37,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008 and 2009 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007 and 2008, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com/.
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