Asbestos. Opioids. Enron. Covid-19. Losses arising from these events can emerge over many years, and can impact different sectors and lines of business that may previously have seemed unrelated.

Given the low frequency and distinct nature of these events, different methodologies have been used to try to measure and manage accumulation risk. There is no single, easy answer and questions include:

• what does good liability exposure data look like?
• how do we define, record and store coverage details and exclusions within liability policies?
• how do we define and label “liability cats” consistently across the insurance and reinsurance market?
• what does horizon scanning mean, and what are best practices around it?
• how do we identify and prioritise newly emerging risks?
• how do we create scenarios to quantify these risks?
• how do we best understand the connectivity between sectors and lines of businesses?
• how do we best use historic events to create future scenarios despite new exclusionary language in place?
• how do we set risk appetites against risks that emerge slowly over time?

In this session, members of the Liability Exposure Management Working Party will present the workstreams we have in place, and deep dive into a recent survey conducted across the market on liability exposure data.

Target audience and assumed knowledge level: High-level session rather than a technical one. This talk is relevant for anyone in exposure management, or who relies on exposure management outputs. Capital, reserving and pricing would benefit from this talk.

Speaker and company:

Ramiz Mohamed, SiriusPoint
Matthew Counsell, Brit
Matthew Lewis, Praedicat