Allianz Global Corporate & Specialty (AGCS) has teamed up with US-based analytics company Praedicat to enhance predictions around key liability risks such as asbestos.

Praedicat uses machine learning to scan large volumes of data from peer-reviewed science publications and profile the likelihood that products or substances will generate litigation risks over their life cycle.

The joint venture aims to identify the next generation of catastrophe liability risks far earlier than under current methods.

“Forward-looking models will transform insurance underwriting,” AGCS Chief Underwriting Officer Hartmut Mai said.

“Emerging risks are challenging to quantify for an insurer.

“But now, AGCS underwriters will be able to identify emerging liability catastrophe risks with increased confidence based on in-depth data.

“Embedding these new tools into our underwriting process not only enhances the quality and efficiency of our decision-making, it also allows us to be true partners for our corporate clients through improved risk identification, potentially far in advance of current screening approaches.”

The two companies have produced a white paper on nanotechnology in food – the first in a series of reports on emerging liability risks.