Praedicat to develop peril casualty product from Lloyd’s Lab
Liability risk analytics software company Praedicat is developing a new insurance product designed to help global industrials secure insurance coverage for innovative and essential products and chemicals that are often excluded or under-insured in standard coverage.
It is the first casualty insurance product to be developed in Lloyd’s Lab, the insurance technology accelerator established by Lloyd’s of London.
The new insurance product has been designed with input from brokers and managing agents in the Lloyd’s market who provided mentoring during the Lloyd’s Lab. The insurance product is dubbed 100-100-100 or Hundreds, and will cover $100 million limit excess of $100 million attachment point on a named peril basis covering 100 of Praedicat’s profiled litagion agents for both general liability and D&O.
The coverage can include innovative new technologies regarded as emerging risks, such as 5G or nanotechnology, as well as essential chemicals in manufacturing and agriculture.
“The Hundreds is innovative at many levels,” said Matthew Fredette, the VP of Named Peril Products for Praedicat. “It covers risk on a named peril basis, which creates a transparent data flow from the customer’s coverage gaps all the way through to the reinsurance market. It also can be priced, and the risk can be managed, based on the underlying science that can drive the liability. This gives comfort to underwriters while also providing incentives to their customers to design safer products.”
Another innovation in the design is coverage for both general liability and D&O around the same liability incidents, which is a common coverage gap and a challenge to global industrial risk managers.
As part of Lloyd’s Lab, Praedicat was able to confirm that underwriters can bundle these coverages that are historically separate when the underwriters have data that allows them to grow profitably and control aggregation.
Trevor Maynard, Lloyd's head of innovation, said: “We are excited about Praedicat’s efforts to launch Hundreds during their time in Lloyd’s Lab. This was one of our key objectives for Lloyd’s Lab and Praedicat is the first to achieve it for a casualty product.”
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