Lloyd’s unveils method of assessing accumulations of liability risk
Lloyd’s has presented an innovative approach to managing accumulations of liability risk, a challenge the market claims has the potential to send shockwaves through the insurance industry.
A new report, developed by liability catastrophe modelling company Praedicat in collaboration with Lloyd’s, sets out a new methodology which uses big data to improve insurers’ understanding of liability risk.
New technology is used to search and mine data from scientific research associated with potential liability risks. This approach estimates the probability of a general consensus being reached that exposure to a substance or product causes a particular form of injury.
According to Lloyd’s, the report also shows the potential of big data innovations to create more robust liability risk management for insurers.
“Further developments in liability catastrophe modelling using big data could offer insurers a means of managing liability accumulations while also identifying opportunities to increase exposure to certain risks where the accumulation is consistent with their risk appetite,” said Lloyd’s.
Trevor Maynard, head of exposure management at Lloyd’s, added: “Rapid advancements in big data have opened up a wealth of new opportunities in the understanding of emerging risks.
“One area in particular in which this is creating new possibilities is around the management of liability risk. The approach explored in this report, developed by Praedicat, is one example of how new technologies are being used to enhance our understanding in this area.
“While the most effective risk transfer is expected to continue to rely on a combination of underwriting expertise and detailed analysis, emerging technologies are offering new insights that we hope will drive further innovation in the insurance industry.”
Robert Reville, Praedicat chief executive officer, said: “Actuaries were the original data scientists applying innovative statistical methods to price and spread risks. Today, new technologies and ‘big data’ are bringing a new wave of statistical innovation to liability insurance, promising a more robust market and a greater ability to help their clients manage the most complex risks.”
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Intelligent Insurer
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom