Stochastic modelling of liability accumulation risk (2.91 MB, pdf)
This innovative approach categorises casualty events based on a company’s business activities - its products and services, operations and infrastructure. This allows insurers to map the economic relationships as products and services move through the economy.
This helps (re)insurers model liability risk systematically, regardless of risk classification, similar to the way in which they model catastrophe exposure.
This has not been possible previously and represents a big step forward in better understanding liability risk exposure.