- Nekomodel update including revised loss allocation model and incorporation of the most recent available data on active litigation events, firmographics, and analyst assessments of company exposures now available in CoMeta's Exposure Management feature.
- Updated company risk scores and probabilistic loss information now available in CoMeta's Underwriting feature.
One of the most complex aspects of the Nekomodel is the allocation of economy-wide mass litigation loss to individual companies. This update improves this allocation model in two important ways. First, we have revised our approach to determining which subsidiaries within a corporate family tree are implicated in a simulated litigation event. The approach used previously could result in an overestimate of the likelihood a corporate entity higher up in a corporate tree has litigation for a Litagion agent when assessed on a consolidated basis. This was especially true for companies with highly complex corporate structures. Second, we made adjustments to the fraction of loss within a simulated tort that flows to companies that produce a Litagion agent and, more generally, to larger (“deep pocket”) companies. The result of this change is to allocate a higher fraction of loss to companies in Praedicat’s inventory of 127,607 companies relative to smaller unnamed companies that can be modeled via an industry proxy. Beyond allocation, we also incorporated revised historical litigation data for addictive software design, chlorpyrifos, and arsenic, which resulted in changes in probabilistic loss severity estimates for associated litigation events. This release also takes advantage of the latest available firmographic data and analyst assessments of links between companies and Litagion agents.
Company risk score update
CoMeta's Underwriting feature, including company risk scores and probabilistic losses, has been updated to reflect our most recent release of the Nekomodel. Risk scores are now available for a much larger set of companies than before spanning exposures to a much larger number of Litagion agents. A small number of companies that have exposures only to Litagion agents that are not modeled in the Nekomodel (e.g., antibiotic overprescription, carbon dioxide emissions) will still display missing risk scores.