Willis Group Holdings has launched a proprietary analytical tool that it claims provides robust decision support to clients in the design of D&O insurance programmes.
WISDOMS draws from a database of historical D&O losses, accounting and corporate governance metrics, high risk events, and stock price volatility in order to generate loss probability distributions that show both the magnitude and likelihood of future losses. The model then incorporates client-specific factors relating to risk capacity and risk appetite, to determine the optimal D&O programme structure.
