Moody’s gets casualty & liability modelling capabilities with Praedicat acquisition

Moody’s Corporation has taken a significant step to expand its risk analytics capabilities for the global insurance, reinsurance and insurance-linked securities (ILS) industry, acquiring Praedicat, a specialist in casualty and liability risk modelling.

The acquisition adds “comprehensive casualty and liability modeling” to Moody’s existing range of solutions for the insurance industry.

Recall that Moody’s acquired catastrophe risk modelling specialist RMS in 2021.

The company sees it as a further enhancement of its overall risk assessment strategy, and it’s timely as well given the growing interest in casualty insurance-linked securities (ILS).

“As losses from catastrophic events are increasing, insurers are constantly looking for science-based casualty data and analytics,” explained Rob Fauber, President and Chief Executive Officer of Moody’s. “Praedicat’s industry-leading liability modeling enhances our data and analytics capabilities to deliver actionable insights that will help the casualty insurance industry customers navigate the complex risk landscape.”

Moody’s said it will integrate Praedicat’s capabilities into its existing suite of insurance solutions, offering casualty insurance market participants a holistic approach to understanding their risk exposure.

Praedicat’s models and predictive analytic tools enable insurers and reinsurers to better understand risks associated with catastrophic events, including product and environmental liabilities.