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Analytics and Benchmarking

We bring you cost-saving risk strategies by shining a light on the facts.

We select the right data and put our proprietary analytical tools to work to better understand your risk. With this information, you can feel more confident in your decision making. Drawing data from our extensive Global Benchmarking Portal, actuarial and statistical analyses, financial analysis, and decision modeling, we can help our clients better understand their risks, evaluate alternatives, and, ultimately, reach the best decisions with the data and analyses to back them up.

$75

billion in premium placements

$10

trillion in limits

$45

 trillion in insured value

Benefits of Analytics and Benchmarking

Our benchmarking capabilities span a spectrum of services aimed at reducing a company’s total cost of risk, such as:

  • Understanding the capacity for an organization to take on more or less risk and the forecasted outcomes of each.
  • Benchmarking losses, deductibles, limits, and the pricing of your insurance program against comparable peers.
  • Quantifying the probability and severity of complex loss events and identifying appropriate limits.
  • Identifying the optimal risk financing solutions and structures that reduce your economic cost of risk.

 

Analytics and Benchmarking Coverage

Marsh Analytics Suite

We use Marsh’s industry-leading analytics to provide insights and clarity that you need to make confident, strategic decisions aligned with your objectives.

Catastrophe (CAT) Modeling

We use CAT modeling results in a number of ways, including helping you review, analyze, and model your company’s property data against historical or potential catastrophic events.

Frequently Asked Questions

The insurance market is constantly evolving, and so are your company’s needs. Insurance benchmarking gives insight into recent trends while helping you identify underperformance or opportunities to reduce cost.

A Marsh McLennan Agency consultant will use advanced analytics to benchmark your organization’s insurance performance, cost, and risk exposure against peers in your industry and best practices. It ensures your insurance benefits from recent trends, and your coverage still reflects the latest developments within your company.

With the most thorough benchmark insights, CFOs can leverage current data to negotiate more favorable policy terms and maximize their investment. Continuous benchmarking will allow you to identify emerging risks and legal requirements while gaining valuable insights into your claims-handling processes.

While our consultants will always slightly adjust the benchmarking approach to your unique situation, some steps involved remain the same.

They’ll assess your premium costs, coverage levels, claims management, and risk exposure. This aids in understanding your current situation and whether it is subject to recent changes. They will also develop an action plan which may look different depending on your situation. This can involve negotiating additional coverage or monitoring your operations for deeper insights. The idea is to understand your enterprise in relation to overall business trends and the specific exposure within your industry.

Throughout the process, your consultant will analyze data points like premiums written, loss and expense ratio, and retention rates. Additional metrics like your average claims processing time and underwriting expense per policy will help you understand how your insurance package performs financially and functionally.

The combination of insurance benchmarking and analytics allows you to compare your insurance terms across different insurers. This helps your organization negotiate competitive pricing consistently.

Thanks to the deep insights into your operations and how they might differ from broad industry trends, you can also evaluate your policy’s effectiveness more reliably. Based on the data gathered, you may decide to redesign your policy or streamline operations for future savings.

Finally, regular insurance benchmarking makes you a more valuable business partner. Once you identify potential operational deficiencies or gaps in coverage, you can address compliance obligations more effectively. While this drives cost optimization, it’ll also facilitate additional strategic partnerships, as you can use your up-to-date benchmarking data as leverage in business negotiations.

Advanced data analysis will provide you with deeper insights into your policy’s cost structure. Useful as that data may be to optimize your coverage, it can also contribute to your overall business strategy.

Once you understand your resource allocation at a deeper level, you can guarantee each component of your policy aligns with your business interests, whether you focus on business continuity to protect your reputation or on transferring certain types of risks to optimize your ROI.

Proper insurance benchmarking gives you insight into your current risk exposure and the focus of your insurance strategy. You’ll require different coverage at various stages of your business’s lifecycle, so it’s best to constantly identify areas of improvement, like you would within your business.

Your Marsh McLennan Agency consultant can also apply predictive analytics to your plan so you can recognize patterns over time that would otherwise go unnoticed.