Moody’s launches casualty group to tackle emerging liability risks

Moody’s has launched a casualty risk group with six leading insurers and brokers to close data gaps and improve the industry’s understanding of emerging liability exposures, including risks linked to artificial intelligence and per- and polyfluoroalkyl substances (PFAS).

The Moody’s Casualty Risk Intelligence Group (MCRIG), launched in New York, will focus on standardising exposure, loss and claims data, improving portfolio transparency and developing forward-looking intelligence on litigation trends.

Founding members include Axa XL, Convex, Marsh, RenaissanceRe, Tokio Marine, and Travelers.

The initiative comes as casualty insurers face questions about how emerging risks and litigation could affect future claims. Its founding members will work with Moody’s on data standards and analytics intended to give insurers a clearer view of their exposure.

Moody’s has also expanded its casualty analytics capabilities through investment in data and modelling, including its 2024 acquisition of Praedicat. Its wider data resources cover company profiles, financials, credit risk, mergers and acquisitions, directors’ and officers’ liability, litigation, cyber risk scores and satellite analytics.

Joe Melly, managing director and head of casualty and financial lines at Moody’s, said: “Casualty insurance is the next frontier for risk analytics, and Moody’s is committed to leading that transformation. The casualty industry carries enormous economic weight and growing complexity. It is ready to move toward new data standards, litigation intelligence, and decision-grade analytics to help firms understand and manage their exposure.

“The formation of MCRIG is Moody’s route to achieving this goal. By engaging with a range of participants, MCRIG aims to support the enhancement of independently developed analytical frameworks and insights intended to advance risk understanding.

“We are proud to launch the MCRIG in New York and to do so with such a strong and diverse group of founding participants.”

Noel Richardson, chief risk officer at Axa XL, said: “Casualty insurance faces significant complexity from emerging risks such as PFAS and AI liability, yet the industry relies largely on backward-looking analysis. Through MCRIG, we have an opportunity to develop the data standards, litigation intelligence, and forward-looking analytics that are currently missing. By working with peers and Moody’s, we can build the tools casualty underwriting genuinely needs—and create real value in how we assess, price, and manage risk.”

Christopher Ross, global casualty leader at Marsh Re, said: “Marsh believes strongly in the benefits of a collaborative approach to exploring emerging risk issues and welcomes the opportunity to work with our fellow MCRIG members to develop data-driven insights that empower our clients with new and cutting-edge views of risk. The casualty (re)insurance market has undergone significant changes over the past several years in response to the evolving nature of risk. The advent of AI and its downstream implications will only accelerate change, and we will lead the industry in evaluating and creating solutions that enable our clients to succeed in this market.”

Fiona Walden, senior vice-president and chief underwriting officer for casualty and specialty at RenaissanceRe, said: “We are proud to be a founding member of the MCRIG and look forward to contributing our expertise and partnering with Moody’s and our fellow members to advance casualty analytics and data standards across the industry. This group reinforces our efforts to bring greater transparency and forward-looking insight around emerging casualty trends, supporting our clients and the long-term health of the casualty market.”

Don Mahoney, vice-president of enterprise underwriting for casualty at Travelers, said: “We are pleased to join Moody’s and this exceptional group of partners. This initiative will provide better visibility into casualty exposures in an ever-changing environment and a stronger foundation for risk managers and underwriters across the industry.”

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