April 2021 – Per- and polyfluoroalkyl substances (PFAS) is a Litagion© Praedicat has been monitoring through our Emerging Risk lifecycle for some time. In an AM Best article, “On High Alert: Rising Risks of PFAS Claims and Litigation Capture New Attention”, Dr. Adam Grossman discusses PFAS litigation, Praedicat’s Emerging Risk Framework, and the tools Praedicat can provide insurers and reinsurers to predict their PFAS liability.
The article posits that “industry experts are seeing parallels between PFAS risk and asbestos litigation, which for years hit insurers hard. Insurers are now reacting by creating stand-alone products and adding PFAS-related policy exclusions for losses stemming from drinking water contamination, environmental remediation, and product liability and bodily injury claims related to the forever chemicals.”
Praedicat’s Emerging Risk Scenario platform can help insurer and insureds estimate the total potential cost of litigation, understand it’s spread through the economy, who might pay, and how insurance can respond.