Willis Towers Watson (WTW) has introduced a new Risk and Analysis (R&A) model for the commercial credit market.
In a statement, WTW said that the model was designed for both newcomers to trade credit insurance and experienced users, and it analyzes customers’ trade accounts receivable to predict potential losses across a range of statistical scenarios.
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A typical model run includes the rating and risk diversification based on an aggregated portfolio, a region, a trading sector and a single buyer; the likelihood of default loss projections on a portfolio basis; the breakdown of exposures by sector and region; and customizable return on investment (ROI) calculations for credit insurance that examine the cost of premiums versus sales and projected losses
“By identifying the unique frequency and severity of potential credit risk losses in a company’s receivables portfolio, the model takes a data-driven approach to support customers in developing and structuring the most suitable solutions to increase sales safely and with confidence,” said WTW.
“WTW has a long track record of leveraging our R&A platforms to drive additional businesses by providing data-driven analytics to our customers,” said Scott Ettien, Executive Director of WTW. “Our model helps companies better understand how trade credit insurance can be viewed as a viable risk transfer instrument for capital substitution.”
The launch follows WTW’s recent partnership with social business intelligence and data analytics company Polecat Intelligence to support its solutions in areas such as life sciences, reputation and product recall risk.