Praedicat’s Company Risk Score

Praedicat’s Company Risk Score

Praedicat’s Company Risk Score 700 350 Meghan Dengler
Praedicat Introduces the 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 Company Risk 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 Company Risk 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. Simply put, the Company Risk Score simplifies emerging risk.

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Learn more about Praedicat and our Lloyd’s liability scenario solution, emerging risk framework, COVID-19 offerings, as well as our collaboration with AON Reinsurance Solutions.

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