In this episode of In the Know, host Chris Hampshire is joined by Lucian McMahon, senior manager at Verisk Analytics Extreme Event Solutions Group, where he leads the research and development of scenarios for the Arium liability catastrophe modeling platform. Lucian details where this industry is headed, emerging liabilities that are of most interest, and why someone with a data background should consider getting involved in the insurance industry.

 

Key Takeaways

• Lucian wasn’t planning on joining the insurance industry, initially.
• A little bit about what Lucian does at Verisk Analytics Extreme Event Solutions Group.
• The role of research in processing and quantifying emerging risks.
• Lucian details the recent example of a major asbestos claim.
• A look at the future of emerging risks in the liability space, including climate change liability.
• Perceived risk plays a major role in anticipating and estimating future liabilities.
• Details about emerging liabilities regarding PFAS chemicals.
• Property liability clash refers to natural events that also have liability implications, such as wildfires in California.
• Why should someone with a data background consider getting involved in the insurance industry?
• A five-year look at the journey and future of liability catastrophe modeling.
• What Lucian wishes he had known at the beginning of his own journey.

 

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Quotes

• “[We are] asking the right questions and then crafting a narrative around which it is reasonably credible that liability might spread and ultimately manifest in losses in the insurance industry.”
• “The possibilities of different liability events and how they might manifest are very fluid and complex.”
• “I think climate change liability is very interesting in the context of how people respond to climate change.”
• “Often we are trying to anticipate and estimate how human beings respond to risk, even perceived risk.”
• “Insurance in many respects is a very data-rich space.”
• “We’re in an exciting space and solving problems that many people said weren’t possible to solve just a few years ago.”