Tailoring loss cost analytics tool to Tunisia's risk profile
This briefing describes how Marsh Re’s India, Middle East and Africa (IMEA) and Global Model Solutions and Advisory teams partnered with a multilateral development organization in Tunisia to develop and deliver a loss cost analytics (LCA) tool tailored to the country’s risk profile.
The LCA tool is designed to support a range of practical uses:
- Estimating annual average losses and probable maximum losses at national and sub-national scales.
- Examining tail risk and the impact of low probability, high-severity events.
- Multi-peril functionality that allows users to look at flood and earthquake separately or combined.
- Comparing the costs and benefits of financing strategies (sovereign risk transfer, layered insurance, reserve funds, parametric options).
- Stress testing insurance arrangements and assessing cash flow resilience under different event sequences.
These capabilities can help Marsh Re clients and stakeholders to build a data-driven foundation for more informed risk transfer decision-making.
“The LCA tool supports stakeholders to understand financial exposure, compare options transparently and plan for resilience in a way that reflects a country's hazard profile and institutional context,” explained Lukas Müller, Chairman of the Middle East and Africa region.
“It’s a great example of how our experts develop sophisticated modeling, analytics and advisory solutions for our clients.”