Hiscox chooses Praedicat for London market casualty risk modelling

0

Hiscox has licensed CoMeta and Oortfolio, the AI-driven liability cat risk modelling platforms of Praedicat, for use within its London market casualty business.

Praedicat’s AI technology mines peer-reviewed published scientific literature to extract signals of emerging risk, maps these risks to commercial activity, and quantifies the losses that could result from mass tort litigation, equipping insurers with a scalable early warning system that identifies potential future risks.

Hiscox is building out its existing approach to exposure management with Praedicat, which will contribute to its underwriting strategy by helping to identify areas of opportunity and increase portfolio diversification.

The insurer will also use Praedicat’s Portfolio Underwriting and Aggregation Monitoring workflows to identify emerging risks, and to evaluate and benchmark individual account risk by relying on the 40,000 individually profiled companies and their associated loss estimates in Praedicat’s database.

Using Praedicat’s probabilistic loss model results, Hiscox will be able to assess the impact of latent liability exposures to its book of business and will also be able to stress test its portfolio against Praedicat’s library of 88 latent liability RDS and XDS scenarios.

Grant Dewar, senior vice president and global head of sales at Praedicat, said: “Praedicat’s CoMeta and Oortfolio products provide insurers with the ability to manage their casualty risks more effectively and forward-plan their portfolios against emerging risks. We are delighted that Hiscox has chosen to partner with Praedicat to manage its London Market casualty business.”

“It is a privilege to gain the acceptance of Hiscox for casualty risk management,” continued Bob Reville, co-founder and chief executive officer of Praedicat. “I’ve admired Hiscox’s innovative products and its market-leading exposure management and underwriting expertise for many years. We are honoured that as they grow their casualty business, they have turned to Praedicat to partner in managing emerging risks.” 

Craig Knightly, casualty division director at Hiscox London Market, said: “Praedicat provides Hiscox with the ability to strategically assess our existing portfolio to manage our exposure while also being able to stress test the book against Praedicat’s liability cat scenarios, such as opioids, the Covid-19 pandemic, and PFAS, to name a few. We are always looking to gain more insight into the risks our clients are exposed to and Praedicat will undoubtedly be a valuable additional tool in our day-to-day underwriting.”

Share.

About Author

Avatar

Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk