Praedicat, a risk analytics and modelling company for casualty re/insurers and industrial firms, has announced that it plans to develop a new named peril casualty product in the Lloyd’s Lab.
Lloyd’s Lab, the innovation accelerator launched by the Lloyd’s market last year, selected Praedicat as part of the third cohort of insurtechs to participate in its 10-week program, beginning September 2, 2019.
The new insurance product aims to help global industrials secure coverage for innovate and essential products and chemicals that are typically excluded in standard coverage.
It will mark the first casualty insurance product to be developed in the Lloyd’s Lab, and has been designed with input from brokers and managing agents in the Lloyd’s market, who provided mentoring over the 10-week program.
Dubbed ‘100-100-100’ or ‘Hundreds’, the product will offer a $100 million limit excess of $100 million attachment point on a named peril basis covering 100 of Praedicat’s profiled Litagion agents for both General Liability and D&O.
Coverage can include new technologies regarded as emerging technologies, such as 5G or nanotechnology, as well as essential chemicals in manufacturing and agriculture.
Praedicat plans to work with Lloyd’s underwriters to make the coverage available in early 2020.
“The Hundreds is innovative at many levels,” said to Matthew Fredette, the VP of Named Peril Products for Praedicat. “It covers risk on a named peril basis, which creates a transparent data flow from the customer’s coverage gaps all the way through to the reinsurance market.”
“It also can be priced, and the risk can be managed, based on the underlying science that can drive the liability,” Fredette explained. “This gives comfort to underwriters while also providing incentives to their customers to design safer products.”
Trevor Maynard, Lloyd’s Head of Innovation, also commented: “Accumulations of liability risk have the potential to send shockwaves through the insurance industry and are one of the most complex exposure management challenges faced by insurers.”
“It is therefore enormously encouraging to see Praedicat working with Lloyd’s underwriters in the Lab to tackle these problems, demonstrating what is possible when we successfully bring together talent, ideas and technology.”
Lauren Restell, Praedicat’s Liaison to the Lloyd’s Lab and VP of Rating and Regulatory, further stated: “Praedicat offers analytics that facilitate the structuring of new and innovative coverages which benefits greatly from Lloyd’s appetite for innovation. This product is also designed to complement the data flows planned for the Future of Lloyd’s, a future that Praedicat is excited to participate in.”
“The Lloyd’s market has been the home to some of the world’s most challenging risks to insure,” added Robert Reville, CEO, Praedicat.
“We are delighted to work with the Lloyd’s Lab and to use the opportunity to design a new coverage that is consistent with Lloyd’s historic role in the market.”