A client in the chemical manufacturing industry asked Marsh’s Analytics team to conduct a property risk finance optimization study. At the time, the client’s property program was managed by another company, but they were interested in how Marsh could help them address expected capacity constraints and renewal price increases.
Marsh’s Analytics team needed to analyze the limits purchased to assess coverage for the company given the high cost of and limited appetite for excess capacity in the market. By providing data-driven insights into the cost of risk, they knew they could enhance efficiency.
The Marsh team used insights from Blue[i] RFO Analytics and their own industry expertise to demonstrate that lowering limits and redeploying capital elsewhere could improve overall efficiency despite an increase in total premium. Moreover, lowering limits had a negligible impact on their balance sheet exposure due to the inefficiency of non-renewed excess limits.
Marsh’s analytics were a key differentiator and the client has since expanded their usage of Marsh analytics to support their risk decision-making.