A new Aon analysis tool uses decades of Australian litigation and settlement data to help listed organisations assess executive risk.

The Directors and Officers Risk Analyser allows more informed discussions around insurance limits, structure and spend, the broker says.

“Insurance managers and CFOs are increasingly expected to justify decisions on limits, structure and spend,” Aon head of specialty for Australia Alistair Clarke said.

“The D&O Risk Analyser is intended to support clearer, evidence-based discussions.”

Aon says it helps clients move beyond peer benchmarking to better understand the scale and severity of potential exposures.

The tool draws on more than 30 years of Australian D&O claims, litigation and settlement data to offer probabilistic loss forecasting, stock drop scenario modelling and total cost of risk analysis.

Aon says it helps insurance managers, CFOs and boards examine how different loss outcomes could interact with their current programs and affect key financial performance indicators.