XL Catlin has enlisted Praedicat, an InsurTech analytics company, to help address changing liability insurance and reinsurance needs using its emerging risk models and software for casualty re/insurance.
The companies have agreed to work together on a multi-year basis, and will utilise Praedicat’s latency risk model and mass litigation scenarios, its software on emerging risks called CoMeta, and Oortfolio, its portfolio modelling software.
Praedicat focuses on analysing ‘latent’ risks, which emerge over time and can build up in an insurer’s portfolio, the most prominent example of which is asbestos, which has cost the industry over $100 billion and continues to generate losses.
XL Catlin will employ Praedicat’s AI-based technology to analyse health and environmental risks related to commercial products and business practices, assessing potential emerging risks like nanotechnology, hydraulic fracturing, plastics and pesticides.
Nancy Bewlay, Global Casualty Chief Underwriting Officer (CUO) at XL Catlin, said: “XL Catlin is committed to Insuretech innovation, to market leadership in data and analytics for underwriting, and to state-of-the-art enterprise risk management. Working with Praedicat allows us to advance all three goals.”
She added: “Praedicat’s solution is not a risk avoidance approach, it is a risk understanding approach. This was critically important to us as we are here to support our clients’ needs for coverage, which means risk engagement not avoidance.”
David Brooks, XL Catlin’s Global Head of ERM, Man-Made Perils, also commented: “XL Catlin has developed a broad range of risk scenarios for property and casualty. The hardest area to build them and keep them realistic is in liability where new technologies are emerging, and the world is always changing. We were impressed with Praedicat’s science-based approach to the problem.”
Additionally, Robert Reville, Chief Executive Officer (CEO) of Praedicat, said: “XL Catlin is one of the insurance industry’s most innovative companies. We’ve been impressed with the creative ways they are applying our products. We are delighted to work with them.”