Risk Data Analytics is to release a new financial risk tolerance tool that contains a growing repository of publicly available financial insurance focused information of corporates listed on major global stock exchanges.
The tool estimates the amount and impact an unbudgeted risk event has on key analyst ratios and estimates an industry-specific three-year weighted average insurable risk retention amount.
It also includes scenario testing, effective corporate and premium tax impacts, volatility work back, subsidiary analysis and forward-looking budget functionality.
Risk Data Analytics co-founder Stuart King said: “The amount of risk a firm can withstand before negatively impacting its financial wellbeing is key to understanding the optimal insurable risk transfer point. Doing so positively benefits both corporates and insurers, many of whom dollar swap risk, eroding capital on both sides of the value chain.”
According to King, this is the first in a planned series of web-based insurable risk retention decision-making tools.
Future ambitions include working with industry partners to connect corporate risk based data (via brokers and captive insurers) to insurance markets or directly to alternative insurance based capital providers.
Martin Horecky, also a co-founder of the firm, said: “We believe in providing simple effective tools to address complex and challenging topics. Very often a back to basics approach is the most impactful innovation. Structured data is key to success.”
