Latent claims are those claims arising many years later from risks not originally envisaged by the underwriter. Dealing with latent claims is a highly challenging area of actuarial work where conventional models are often inappropriate. We have a huge experience of reserving, commuting and setting capital models in respect of latent claims. Our partners and senior consultants have a combined experience of over 100 years of dealing with these types of losses.
We have developed market leading projection tools in the area of US Asbestos and UK asbestos and on more specific industrial diseases such as black lung. Models have been built for direct, first round reinsurance and retrocessional business, including LMX.
We are currently developing a joint venture to assist the London Market in settling its US Direct asbestos exposures and have recently completed a study of UK asbestos related diseases based on what is probably the largest and most detailed set of data in the UK.
Finally, we are well positioned to anticipate the likelihood and magnitude of any future UK latent claims as a result of our extensive experience of pricing and underwriter support on Employers’ Liability insurance.
