Broker claims to be driving down the cost of risk

Aon Global Risk Consulting launched a cost reduction initiative for European businesses to help drive down their total cost of risk.

The new initiative is aimed at lowering the cost of risk and promoting a more efficient use of capital by targeting:

• Short term cost reduction through insurance programme optimisation

• Liquidity release from historical self-insurance structures, such as captive insurance vehicles

• Loss prevention initiatives

• Accelerated claims closure

• Outsourcing of risk management services to Aon

• Development of metrics to measure and control the cost of risk.

Rory Moloney, head of Aon Global Risk Consulting in EMEA, said: ‘Increasingly we are being asked to support clients in realising ‘quick wins’ in the area of cost reduction or liquidity creation. To achieve this we have formed a cross discipline response team who use a holistic review process and transparent metrics to identify such opportunities.’

Charles Winter, head of risk finance at Aon Global Risk Consulting, added: ‘In a difficult economic climate, it becomes even more imperative to ensure that your risk management and risk financing strategies support the business by driving down the cost of risk both on a strategic and tactical basis.’

‘Re-aligning risk financing programmes with the business’s needs and eliminating inefficiencies can result in real cost savings. If, at the same time, improvements in loss prevention can be realised through, for example, the reduction of accident rates, the savings can be significant.’