Willis Group Holdings has introduced EPIQSM (Environmental Prospective Identification and Quantification), which it describes as an “an innovative and proprietary process that generates credible loss distributions for environmental risks, even where historic loss data is scarce or not available.
“The output from EPIQSM will describe the Average or Expected Loss over time as well as project environmental loss events at high confidence levels (e.g. 1 in 20, 1 in 100 year events etc.),” Willis continued. “If risk financing is a consideration, the output from EPIQSM can be combined with other Willis proprietary analytic techniques to identify optimal insurance program structures.
“By quantifying their low-frequency/high-severity risks, clients gain a more precise understanding of their exposure which allows them to improve the quality of their risk management decisions, increase the efficiency of capital allocations and afford better protection to their corporate reputation.”
Michael Balmer, Willis’ North American Environmental Practice Leader noted: “In today’s world, management cannot afford to ignore environmental liability – society, investors, regulators and other stakeholders demand transparent disclosure and responsible risk management. Our EPIQSM process enables our clients to fundamentally shift their understanding of critical environmental risks from a purely subjective assessment to a credible, analytical measurement. This measurement can form the basis for more informed risk management decisions.”
Willis explained that the “EPIQSM process begins with a thorough review of a company’s environmental exposures through a workshop session facilitated by Willis. The consensus-driven data captured during this session is then run through Willis’ proprietary analytical tool, which generates a credible loss distribution. Willis’ quantitative specialists then integrate actual historic and any relevant public domain data to generate a refined and robust quantification of the environmental risks facing the client’s organization.”
Source: Willis Group Holdings – www.willis.com
Topics Pollution
Was this article valuable?
Here are more articles you may enjoy.
4,800 Claims Handled by Unlicensed Adjusters in Florida After Irma, Lawsuit Says 
Dubai Floods Expose Weaknesses to a Rapidly Changing Climate 
Trump’s Bond Insurer Tells Judge Shortfall Is ‘Inconceivable’ 
JPMorgan Client Who Lost $50 Million Fortune Faces Court Setback 
