Marsh diagnostic tool analyzes costs of risks

Marsh L.L.C. has introduced a diagnostic tool designed to analyze casualty program costs and trends, the broker said Wednesday.

MPACT Cost Diagnostic will help companies “make informed decisions about how to structure insurance programs and prioritize risk management investments to maximize returns,” said the company in its marketing material for the tool.

Christine Williams, New York-based managing director in Marsh’s casualty practice, said, “We’re pulling together our analytics to provide our clients with a comprehensive look across all elements” of the total cost of risk, which include retained losses, the cost of claims management, managed care and the insurance program, and the cost of collateral, as well as accounting for program volatility.

“This looks across all these elements in one report, so we can prioritize investments and point to comprehensive and customized solutions to those areas” that are defined as problem areas, or “ones that you have the most opportunity” for return on investment, in investing in risk management programs Ms. Williams said.