Praedicat, the liability emerging risk analytics company, has launched Nekomodel X, the next generation of its probabilistic casualty catastrophe model. Nekomodel X is designed to expand on the underwriting applications of previous model releases and to facilitate exposure-based pricing and reserving – capabilities that have never been available in a scalable way to casualty insurers.
New methods for pricing and reserving incorporating data on exposure to emerging risks can drive sustainably profitable business
for general liability insurance, a $90 billion casualty insurance line which is facing increased volatility and aggregation risk due to the rise of social inflation.
“Nekomodel X’s mass litigation model better reflects the behavior of a plaintiffs’ bar with unprecedented access to capital,” says Dr. David Loughran, Praedicat’s Senior Vice President of Product & Chief Economist. “We have captured the impact of the current environment where plaintiffs’ attorneys have sufficient capital to experiment with new theories of causality and can afford sustained litigation based on those theories. No underwriter should accept a risk exposed to U.S. tort law without first checking its exposure to the more than 240 distinct
casualty risks covered by Nekomodel X.”
Nekomodel X employs natural language processing and machine learning to connect 128,000 companies, their products, and their business activities to the global, peer-reviewed scientific literature that investigates whether these products and activities have the potential to cause bodily injury or environmental harm. Granular exposure data coupled with a probabilistic forecast model quantifies the frequency and severity of casualtyrelevant litigation for every company.
More info at the Praedicat site here.
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