Allianz Global Corporate & Specialty (AGCS) has collaborated with InsurTech firm Praedicat to utilise big data, advanced data analytics, and comprehensive predictive modelling techniques to better identify future catastrophe liability exposures.
AGCS is the corporate insurance carrier of global insurer and reinsurer Allianz, and together with Los Angeles, U.S., domiciled InsurTech entity, Praedicat, is working to improve the understanding and identification of future catastrophe liability risks through the use of big data.
Praedicat utilises an advanced modelling engine which incorporates machine learning technology to scan vast quantities of data from “peer-reviewed science publications” in order to attain the likelihood that solutions, products or substances will drive litigation risks over their life span.
A statement from Allianz explains that once Praedicat risk agents have identified a peril or perils, they then track this over a period of time as new data comes to light, which ultimately “shapes scientific acceptance of the risk.”
The collaboration is designed to bring together the technological skills and predictive modelling capabilities of Praedicat with the underwriting skills and market experience of AGCS, alongside the insurers extensive liability risk portfolio analysis.
Hartmut Mai, Chief Underwriting Officer (CUO) and Board Member, AGCS, commented; “Forward-looking models will transform insurance underwriting. Through this collaboration we hope to change the core role of underwriters, freeing them up from the daily paper grind and empowering them to be data scientists.
“Emerging risks are challenging to quantify for an insurer. But now, AGCS underwriters will be able to identify emerging liability catastrophe risks with increased confidence based on in-depth data. Embedding these new tools into our underwriting process not only enhances the quality and efficiency of our decision making, it also allows us to be true partners for our corporate clients through improved risk identification, potentially far in advance of current screening approaches.”
The combination of historic loss data and advanced, comprehensive forward-looking modelling techniques, should enable firms to better understand and identify the next generation of catastrophe liability exposures for customers, far earlier than has been previously possible.
The combination of two approaches should provide AGCS underwriters with greater confidence when identifying future risks, and assessing exposures for both individuals and industries.
Robert Reville, Chief Executive Officer (CEO) of Praedicat, said; “With forward-looking models, machine learning, and algorithmic search, the insurance sector is in the midst of transformation. These new technologies are driving competitive advantage. Praedicat is very proud to be working closely with AGCS in its commitment to the new technologies to drive the future of underwriting of corporate risks.”
By combining scientific and management expertise and skills together it’s hoped that emerging risks will be better predicted, understood and effectively managed in the future, minimising the surprise and potentially vast impact of future catastrophe liability exposures, as seen with Asbestos in the past.
Michael Hohmann, Global Head of Liability, AGCS, added; “AGCS will help clients understand potential emerging liability risks and their impact on their company while providing innovative solutions. We will use the Praedicat data and tools to help our clients achieve better product stewardship and to tailor their insurance program to their specific risk profiles.”
