Emerging Liability Risks: Harnessing big data analytics (229.03 KB, pdf)

The report – Emerging Liability Risks: Harnessing big data analytics – presents a new approach designed by liability catastrophe modelling company Praedicat Inc., and helps insurers tackle the four key challenges associated with understanding emerging liability risks:

  • Identification: recognising an emerging risk before it manifests as a loss or claim
  • Contextualisation: comparing the size of risks, both relative to other emerging risks and to previous risks
  • Projection: converting an emerging risk from the context in which it is identified, such as scientific literature, into an exposure-relevant context, such as companies and portfolios
  • Quantification: estimating the expected loss from an emerging risk

The report is part of Lloyd’s on-going research into different ways of reducing uncertainty in this area.