Summary
This case study outlines the challenges and strategies related to underwriting in the context of PFAS litigation, which is increasingly being compared to past mass torts like asbestos. The document discusses how the insurance industry has traditionally responded to mass torts with broad exclusions, which have diminished the value of casualty insurance products. However, it highlights how Moody's CoMeta platform provides insurers with the necessary data and analytics to track ongoing litigation and forecast future trends. The case study presents a referral program developed by a Moody's customer that utilizes this data to create a flexible underwriting strategy for PFAS-exposed risks. By identifying companies involved in active litigation and assessing modeled loss estimates, underwriters can make informed decisions on policy renewals and new submissions. This approach has led to significant business retention and growth, demonstrating the importance of leveraging analytics in managing emerging litigation risks.
