Dr. Robert T. Reville, President & CEOWhile property insurers have to confront risk arising out of natural calamities like earthquakes, and hurricanes, casualty insurers have to confront underwriting risk from disasters of human origin like terrorist attacks, airplane accidents, and asbestos. The variant nature of the risk may proffer complexity in aggregating it, make a dent in the economic health, and disconcert the insurer with extreme litigations. Based in Los Angeles, CA, Praedicat offers science-based risk analytics to ease the processes of underwriting and managing casualty risk.“Our patent-pending technology delivers information extracted from scientific literatures on emerging risk. We analyze the risk with a structured approach incorporating applied legal reasoning and economics,” says Dr. Robert T. Reville, President and CEO of Praedicat.
The company has drawn inputs from data scientists, bioscientists, engineers, lawyers, and economists to comprehend multiple aspects of casualty risk and create innovative solutions like CoMetaTM, its flagship product. CoMeta converts the corpus of peer-reviewed science into industry and company exposures for underwriting. CoMeta relies on the world’s community of toxicologists, epidemiologists, and bioscientists to identify emerging risks, which Praedicat extracts algorithmically from scientific journals. The risks are automatically prioritized by the energy and in¬tensity of new attention the risks receive, and are tracked over time as they mature. In addition, CoMeta’s database of emerging risks is built upon an analysis of the industrial footprint of the risk so that Praedicat’s clients can devise underwriting strategies accordingly. Updates are made in the repository with the emergence of new science. CoMeta’s rich repository enables insurers to comprehend underlying risks and make prudent selections for technical underwriting of large corporations. “CoMeta eases the process of developing underwriting strategies, a difficult task as it is inherently research based and historically difficult to scale,” says Reville. In pursuit of equipping the insurer with the ability to intuitively comprehend the multifaceted and complex risk in its portfolio, the analytics in CoMeta are visualized using an innovative presentation called the QuindrexTM.
Clients value our track record in insurance, and demand is emerging to employ our horizon scanning expertise in other industry verticals as well
Praedicat will soon launch its newest product called OortfolioTM, which uses quantitative modeling to assess the robustness of an insurer’s portfolio in the event of casualty catastrophes and whether exposed portions can be managed or reinsured according to stress test results.
At the heart of Praedicat’s approach is input from multiple disciplines, including human capital with diverse backgrounds and domain expertise, such as chemical engineering, computer science and economics. This multidisciplinary approach has enabled the company to achieve striking goals for its clients too. One client had followed a widespread practice in the insurance industry and excluded coverage for a common risk in its liability insurance. Praedicat’s solution showed that the risk would be unlikely to be exposed to lawsuits and presented the client with a new business opportunity running contrary to the rest of the industry. Relying on the results of CoMeta, the client launched broader and better insurance coverage that led to revenue growth and increased market share. “Clients value our track record in insurance, and demand is emerging to employ our horizon scanning expertise in other industry verticals as well,” says Reville.
Easing its clients’ fears of emerging risks on the basis of scientific data is the approach of Team Praedicat. The company is also planning to build risk models appropriate to jurisdictions outside the U.S. to make a foray into the global market space. The landscape of casualty insurance is no shortage of complexities, but the company leadership is eager to take on new found opportunities.