Aon expands Praedicat collaboration
Aon has expanded its strategic collaboration with Praedicat, a liability emerging risk analytics and modelling company. The expanded collaboration will provide powerful new tools for Aon to advise clients on the transfer and mitigation of complex and evolving liability risks, including those associated with climate, microplastics and nanotechnology.
In 2020, Aon and Praedicat formed a partnership focused on developing reinsurance products for specific perils. This latest expansion will allow Aon to deliver emerging casualty risk portfolio analytics directly to clients and collaborate on the design of new and innovative reinsurance products to transfer such risks to the reinsurance, run-off, and capital markets.
While property catastrophe exposures are at the forefront of many re/insurers’ strategic approach, two of the three largest loss events in the history of the property casualty sector were due to casualty emerging risks – those being related to asbestos and the environment.
To monitor and analyse new emerging risks trends, Praedicat’s technology platform leverages artificial intelligence and natural language processing to scan millions of scientific and other scholarly sources. Once new risks are identified, quantitative models are created to translate the scholarship into estimates of the risk of loss. These models can be used to identify historical and future reinsurance coverage gaps and provide a basis for the design and implementation of innovative new solutions to close the gaps.
Aon’s insurer and reinsurer network allows it to identify clients most exposed to such risks, while its broad access to global capital means that risk can be transferred into a range of markets.
Amanda Lyons, US casualty strategic growth leader for Aon’s Reinsurance Solutions, said: “We are excited to expand our collaboration with Praedicat. Emerging risks are always a key concern for our casualty clients, and with Praedicat’s tools and insights integrated into Aon’s suite of reinsurance solutions, we provide our clients with the resources they need to navigate volatility and build resilience in today’s complex liability environment.”
Bob Reville, CEO and Co-founder of Praedicat, added: “Praedicat is delighted to expand our collaboration with Aon, a renowned leader in professional services and reinsurance solutions with a strong record of innovation. Together, we will enable Aon’s clients to better understand and manage their emerging risk exposures, unlocking the potential for much greater growth and value in casualty re/insurance."