Skip to main content

Case study

Developing a new risk profile and strategy after a merger of Tech companies

The Challenge

A large technology company client merged with another equally large company that was not an existing Marsh client. An important challenge faced by the combined entity was the need to quickly understand its new risk profile and develop an optimal risk strategy, balancing the trade-off between the cost of insurance and protection against volatility.

The Solution

Our industry-leading risk analysts and specialist data scientists, leveraged Blue[i] Risk Finance Optimisation Analytics, our digital solution, to bring a quantitative and analytic approach to this challenge. Using insights from the solution, the Marsh team developed a powerful and tailored risk strategy for the new combined entity.

Starting with our client’s internal assessment of their risk exposures, we undertook our own quantitative analysis. We analysed historical losses, current premiums, projected losses and risk for each of the individual companies, as well as for the merged entity. Our future risk assessment included far-reaching 1 in 100 and 1 in 200 year events that could impact risk coverage needs.

Blue[i] RFO Analytics unlocked actionable insights, allowing our client to make informed decisions across their entire risk portfolio. An in-depth analysis of gaps and opportunities along with real-time scenario modelling allowed us to determine our clients risk appetite on the spectrum of reducing cost versus volatility. It also allowed us to successfully address the key questions shaping the risk strategy:

  • What is the impact of changing limits on the insurance program, and how would a lower-limit coverage impact the combined portfolio?
  • Would this new alternative approach align with our client’s overall strategy and willingness to take risks?
  • With this new risk structure, could they maintain, or ideally improve, the overall value they receive from their insurance portfolio?

Finally, the Blue[i] RFO Analytics insights helped shape the risk program for the combined entity.

The Results

The insights from Blue[i] RFO Analytics helped the client achieve a10-20% savings in premium increases in the context of a rising rate market.

We worked with the client to identify further efficiencies, including the removal of excess liability limits, that were statistically unlikely to be used.

And crucially we demonstrated to the client that they could maintain confidence in their risk coverages at their first renewal as a combined entity.

Business leaders need a dynamic solution to help them respond to a changing environment in real-time, anchored by industry-leading data insights and expertise.

Marsh’s Blue[i] suite of solutions provide insights into risk identification, quantification, and help design programs that create economic value across the entire spectrum of risk. 

A modern approach to risk management

Blue[i] Risk Finance Optimisation Analytics provides real time and actionable insights to help you make informed decisions across your risk portfolio. With loss projections tailored to your unique risk profile, you are able to adjust your strategies and assess your risk appetite at both the portfolio and product line level. Assessing your risk appetite, exposure to insurable risk, cost of capital, and cost of insurance allows you to determine how different program options would impact your organisation. You can get the comprehensive answers you need, when you need them, and view analytics tools and modeling in real time.

Like all our solutions, Blue[i] RFO Analytics is backed by Marsh’s experienced team of specialists, who leverage insights from our data to work with you on customised strategies and approaches for your business. 

Learn more about Marsh Advisory's other capabilities

We act as a trusted partner in the face of change, helping clients better anticipate future challenges and capitalise on emerging opportunities through proactive risk advice that builds resilience and confidence.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. LCPA 23/415

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”