Aon Unveils D&O Risk Analyzer to Advance the Management of Executive Officer Risks

Rhea-AI Summary

Aon plc (NYSE: AON) has launched its Directors and Officers (D&O) Risk Analyzer, a digital tool for U.S.-listed public companies to assess and mitigate executive risks. This release joins Aon's Property Risk and Casualty Risk analyzers in a suite of analytics tools. The D&O Risk Analyzer offers:

• Real-time analytics for quantifying potential D&O losses
• Risk exposure and loss models
• Stock price drop analysis
• Total cost of risk visualizations

These features enable real-time loss forecasting and facilitate discussions between risk managers and brokers about potential risks. The tool aims to help clients make better decisions in an evolving risk landscape, particularly in light of rising litigation costs, market volatility, and changing regulatory frameworks.

Positive

• Launch of a new digital tool (D&O Risk Analyzer) to enhance risk assessment capabilities
• Expansion of Aon's analytics suite, potentially increasing service offerings and client value
• Real-time analytics and customizable risk models to improve decision-making for clients
• Enhanced ability to quantify and communicate D&O risks, potentially leading to better insurance program design

Negative

• None.

–  Tool enables risk managers and brokers to assess corporate executive risks and tailor more impactful insurance programs
–  Joins Aon's Property Risk and Casualty Risk analyzers in a growing suite of analytics tools for clients

DUBLIN, Aug. 19, 2024 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today unveiled its Directors and Officers (D&O) Risk Analyzer, a digital application that allows risk managers of U.S.-listed public companies to make data-driven, technology-enabled decisions to mitigate executive risks facing their directors, officers and businesses. The tool is the latest release in a suite of new offerings that use data and analytics to deliver differentiated insights that help clients make better decisions in an evolving risk landscape.

"Rising litigation and defense costs, equity market volatility and shifting regulatory frameworks have added complexity for corporate officer risks," said Timothy Fletcher, CEO of Aon's financial services group. "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."

Aon's D&O Risk Analyzer provides clients and brokers quick access to:

• Real-time analytics, which help clients 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 risk models can be adjusted in real time based on new client information to provide revised insights on view of risk.
• Risk exposure and loss models, which provide a better understanding of exposure to adverse events, from small to catastrophic impact. Brokers and clients can explore the factors driving D&O litigation and exposure (including stock volatility, liquidity issues, disputed mergers and acquisitions and regulatory matters).
• Stock price drop analysis, which measures how varying stock drops for clients may result in theoretical D&O loss based on historical settlement data.
• Total cost of risk (TCOR) visualizations of all client's potential insurance options, which help clients 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 best communicate those decisions.

These features enable real-time loss forecasting to iterate and quantify D&O risk exposures and loss scenarios, allowing discussions between risk managers and brokers about the extent of potential risk, elevating the focus beyond expected loss and empowering risk managers to better covey risk retention and risk transfer options to the C-suite.

Empowering Clients with Actionable Insights

The launch of Aon's D&O Risk Analyzer follows the 2024 debuts of the firm's Property Risk Analyzer and Casualty Risk Analyzer, which provide exposure visualizations and model potential losses to help Aon clients make informed decisions about their risk and insurance options. Aon will unveil additional risk analyzer tools in the coming months to provide data-driven insights on key risks. All Aon analytics tools are designed by Aon's Risk Capital and Human Capital capabilities in collaboration with Aon Business Services to provide Aon clients with actionable insights that allow for greater control over their insurance program structure.

"Aon's D&O Risk Analyzer exemplifies our firm's commitment to serve clients as they make data-informed decisions," said Joe Peiser, global CEO of Commercial Risk Solutions for Aon. "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."

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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Media Contact
mediainquiries@aon.com
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
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SOURCE Aon plc

FAQ

What is Aon's new D&O Risk Analyzer and when was it launched?

Aon's D&O Risk Analyzer is a digital application launched on August 19, 2024, designed to help risk managers of U.S.-listed public companies assess and mitigate executive risks facing their directors, officers, and businesses.

What features does Aon's D&O Risk Analyzer offer?

Aon's D&O Risk Analyzer offers real-time analytics, risk exposure and loss models, stock price drop analysis, and total cost of risk visualizations to help clients quantify potential D&O losses and make data-driven decisions.

How does Aon's D&O Risk Analyzer benefit clients?

The D&O Risk Analyzer enables clients to make data-driven decisions, quantify potential losses, explore insurance options, and better communicate risk retention and transfer options to the C-suite, ultimately helping them navigate the complex D&O risk landscape.

What other risk analyzers has Aon launched recently?

In 2024, Aon launched the Property Risk Analyzer and Casualty Risk Analyzer, which provide exposure visualizations and model potential losses to help clients make informed decisions about their risk and insurance options.