In risk assessment, there is no such thing as over analyzing.

We utilize a number of analytical tools to help you make sound risk transfer decisions. Examples include limit models, coverage metrics, carrier security models and our international executive liability risk matrix.

All of this analysis means that our findings will be unique to your situation. We go beyond just a fine product portfolio. We listen to your needs and use some of the best tools in the business to view your industry landscape in high definition. The result? A custom Arthur J. Gallagher & Co. management liability solution that’s precision-fit to your risk exposure, team and organization. 

We also monitor market changes in D&O policy provisions. Results of our analysis are depicted in the Norton-Bastion Index. This index alters depending on new coverage granted or new restrictions prevalent in the market.

With the index as a guide, we can evaluate our clients’ D&O programs and illustrate how their coverage stacks up in the market. The index, and where your company falls on it, provides a solid metric to board members.

Our proprietary analytics quantifies your technology, media and professional liability exposures based on your specific risk profile and risk control techniques. Our analysis incorporates multiple methods, including peer analysis or benchmarking, historical claim loss analysis and a series of complementary quantitative loss models that blend together to assess this complex risk.

Arthur J. Gallagher & Co. maintains an EPL loss database in order to model risk in terms of both single plaintiff exposure and discrimination class-action claims. As the potential size of EPL claims are directly related to the size and diversity of the insured organization, our loss model has proven to be quite effective as it relates exposure to the number of employees, type and mix of employees, and location of operations. We further provide multidimensional EPL benchmarking reports as well as a review of historical claims with EPL losses in excess of $1 million, taken from our extensive database.

We also use three evaluations in order to suggest minimum limits of liability for crime exposure. These are:

  • A peer analysis using industry-leading third-party databases.
  • An exposure index developed by the Surety Association of America (SAA) in cooperation with the American Institute of Accountants.
  • An analysis of our client’s required bond limits as dictated under the Employee Retirement Income Security Act of 1974 (ERISA).

In these unprecedented times of financial instability, insureds are forced to revisit their counterparty risk in all aspects of their business. Risk associated with your insurance company partners is no exception. Traditionally, insurance professionals have relied on A.M. Best Ratings to advise their clients of the financial strength of carriers, and A.M. Best’s ratings remain an essential factor in any insurance placement decision.

However, many risk managers are seeking additional insights to enhance their decision making process. In response to a growing demand, we developed a financial security model to evaluate insurance companies. The model includes an A.M. Best analysis but also highlights factors such as policyholder surplus, combined ratios and Credit Default Swap spreads as possible leading indicators of carrier instability.

We perform a Directors & Officers Liability (D&O) Limits Analysis, using three distinct analytics to recommend an appropriate range of limits. These are:

  • A peer analysis or benchmarking of limits using unbiased third-party databases.
  • Our proprietary statistical loss model (developed by Dr. Norton), which incorporates metrics used by the plaintiff’s bar to model loss values associated with class-action securities litigation related to allegations of inadequate or inaccurate disclosure. The loss models assumptions are routinely updated from knowledgeable sources to ensure relevancy.
  • A review of historical D&O claims with losses in excess of $10 million, and an evaluation of the potential impact of such losses to your company.

We then synthesize the results to produce a recommended level of limits. This will provide your board with the information needed to assess your management liability risks and decide how to most appropriately cover them.