Praedicat introduces a company risk score
Our company risk score is a numeric representation of how risky a company is to underwrite, based on how exposed a company is to emerging risks that could drive litigation involving the company as a defendant. In other words, we evaluate and quantify the mass litigation risk for a company, and the result is a company risk score.
Building on our forward-looking, science-based risk models, Praedicat’s company risk score helps (re)insurers understand the mass tort or event-driven D&O securities class action litigation risk their insureds face and underwrite and price to account for this exposure. Our score also helps companies, and their insurers, assess the impact of a company’s operations and products on a variety of environmental endpoints to inform the ESG evaluations that are quickly becoming an important aspect of underwriting decisions.
Praedicat has built a series of AI and machine learning algorithms that connect over 100,000 companies, using industry and revenue information, to their products and business activities and then connect those products and business activities to the global peer-reviewed scientific literatures that investigate the potential for those products and business activities to cause bodily injury and environmental harms.
After simulating the ways in which the scientific literature evolves to understand how harmful companies’ products and business activities are, we estimate the likelihood that litigation will emerge, targeting those product and business activities that scientists think cause bodily injury or environmental damage. We use the model results to distill a company’s products and business activities risk into a single 100-point score.
Based on peer-reviewed science and objective third-party data, our evaluation is used by companies to better understand the impacts of their products and business activities, and by insurers to underwrite the liability risk of those same companies. As emerging risks get more and more complex, innovations like a company risk score help make underwriting these risks a whole lot easier.
On October 5th, Carrier Management published an article, “Who Will Be Sued? Praedicat Scores Ease Underwriting for Emerging Risks” which provides a detailed look at Praedicat’s company risk score. The article explores a landscape where emerging risks are becoming more and more complex, and features explanations from Praedicat’s Dr. David Loughran and Julia Fuller on how company risk scores are making underwriting these risks a whole lot simpler.
Read the Carrier Management article here.
Want a quick overview of company risk scores? Dave Loughran visits with our friend Matthew Grant from InsTech London to discuss how our risk score summarizes a company’s exposure to emerging risk for the purposes of commercial liability underwriting and how it makes emerging risks actionable.
Carrier Management – Who Will be Sued? Praedicat Scores Ease Underwriting for Emerging Risks
CIR Magazine – Praedicat expands liability emerging risks underwriting toolset
Insurance Day – Praedicat launches liability risk analysis tool
Insurance Journal – ‘Attribution Science’ May Help Plaintiffs Push Climate Suits Ahead
Intelligent Insurer – Praedicat unveils ‘game-changing’ tool for underwriting complex emerging risks
Reinsurance News- Praedicat moves to simplify underwriting of emerging liability risk
Learn more about Praedicat and our company risk score, Litigation Tracker, Lloyd’s liability scenario solution, emerging risk framework, COVID-19 offerings, as well as our collaboration with AON Reinsurance Solutions.