casualty risk model

Global broker Aon and risk modelling, data and analytics specialist Moody’s have said that they see the annual premiums from the casualty catastrophe reinsurance market as a potential $5 billion opportunity, with a named peril focus seen as the best way to foster development of the segment.

Global broker Aon and risk modelling, data and analytics specialist Moody’s Insurance Solutions have announced an expanded casualty reinsurance collaboration, with part of the goal being to help capital more efficiently allocate to casualty risk.

Moody’s Corporation has taken a significant step to expand its risk analytics capabilities for the global insurance, reinsurance and insurance-linked securities (ILS) industry, acquiring Praedicat, a specialist in casualty and liability risk modelling.

Insurance and reinsurance broker Aon is working in collaboration with Praedicat to develop named peril liability reinsurance products to help insurers transfer emerging liability risks such as those related to nanomaterials and 5G to traditional reinsurers and also the capital markets.

Robert Reville, Chief Executive Officer (CEO) of Praedicat, an InsurTech risk modelling and analytics company for casualty re/insurers, has claimed that the company’s approach to disease litigation may create an opportunity for ILS to enter into the casualty space.

AIR Worldwide and Bermudian reinsurance firm RenaissanceRe are collaborating on the development of what they call the industry’s first probabilistic casualty catastrophe risk model, which the pair say will enhance the industry’s modeling of long-tail casualty risk.

Praedicat, a leading casualty catastrophe risk modelling company, has secured a $6 million Series AA round of investment, from sources including existing investor catastrophe risk modelling specialist Risk Management Solutions, Inc. (RMS) and Jacques Dubois.

Risk modelling firm AIR Worldwide will benefit from liability and casualty risk modelling abilities after parent company Verisk Analytics announced the acquisition of Arium, an independent company focused on liability risk modeling and decision support.

The launch of Oortfolio™, a liability insurance risk modeling platform from Praedicat, could stimulate innovation in liability insurance risk transfer, such as attracting new capital by enabling it to better quantify liability exposures and even liability catastrophe bonds.

A catalyst for the growth of insurance-linked securities (ILS) in the property catastrophe reinsurance sector is the capabilities of third-party modelling, but a lack of predictive modelling within the casualty arena mitigates entry and impact of a similar scale, according to industry experts.