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Liability ENID modelling: A new service from Re: Liability (Oxford) Ltd

Nov 27, 2017
by Andrew@Reliabilityoxford.co.uk
0 Comment
Liability ENID modelling has recently been added to our standard Radar service. (ENID = Event not in Data). What it is. For a given ENID scenario, the new modelling creates an annual liability loss distribution curve for a given jurisdiction e.g. UK.  It then apportions the mean loss across industry codes. Where relevant, the time development of that loss is also estimated from latency periods and from likely dates of knowledge. The time-is-money value of reserving for the loss can then be estimated and the potential opportunity cost of delayed reserving can be calculated. Given that emerging risks arise from science studies it should be no surprise that the same studies can be analysed to give estimates of attributable frequency of loss. Other work is then used to assess how many of these attributable losses could make a reasonable liability claim. For example, if half the attributable cases could prove a breach of duty then the attributable frequency is at most, half the attributable
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