Praedicat, Inc., the Los Angeles-based liability risk analytics software company, announced it is developing a new insurance product designed to help global industrials secure coverage for innovative and essential products and chemicals that are typically excluded or under-insured in standard coverage.
It is the first casualty insurance product to be developed in the Lloyd’s Lab, the insurance technology accelerator operated by the Lloyd’s of London re/insurance market. The new insurance product has been designed with input from brokers and managing agents in the Lloyd’s market who provided mentoring over the course of a 10-week program in the Lloyd’s Lab.
The insurance product is dubbed 100-100-100 or “Hundreds” and will offer a $100 million limit excess of $100 million attachment point on a named peril basis with coverage for D&O and general liability losses from 100 emerging risks identified, tracked and quantified by Praedicat. These emerging risks could include 5G or nanotechnology, as well as essential chemicals in manufacturing and agriculture.
Praedicat said it aims to work with Lloyd’s underwriters who will offer the coverage in early 2020, and welcomes the input of brokers and underwriters to finalize the product plans and preparation of the product prospectus.
“The Hundreds is innovative at many levels,” according to 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, said Praedicat, noting that this is facilitated by providing underwriters with data that allows them to assess their exposures, control aggregation risks and therefore grow profitably.
“Accumulations of liability risk have the potential to send shockwaves through the insurance industry and are one of the most complex exposure management challenges faced by insurers,” commented Trevor Maynard, Lloyd’s head of Innovation. “It is therefore enormously encouraging to see Praedicat working with Lloyd’s underwriters in the Lab to tackle these problems, demonstrating what is possible when we successfully bring together talent, ideas and technology.”
Lauren Restell, Praedicat’s Liaison to the Lloyd’s Lab and VP of Rating and Regulatory, said: “Praedicat offers analytics that facilitate the structuring of new and innovative coverages which benefits greatly from Lloyd’s appetite for innovation. This product is also designed to complement the data flows planned for the Future of Lloyd’s, a future that Praedicat is excited to participate in.”
Robert Reville, CEO, Praedicat, said his company is “delighted to work with the Lloyd’s Lab and to use the opportunity to design a new coverage that is consistent with Lloyd’s historic role in the market.”
Established in 2012, Praedicat is a product risk analytics and liability modeling company for casualty insurers and global industrial companies. Praedicat said it helps companies identify, model and manage current, emerging and emergent liability risks, which enables clients translate liability risk into actionable business opportunities that help obtain profitable and sustainable growth.
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