PACE CLAIMS

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Mass Tort Liability Estimation & Advisory

Entities burdened with complex, long-tail liabilities such as asbestos or pollution are often challenged by their unpredictability and the magnitude of their financial impact on their business.

Our professionals have been advising clients on complex mass tort/long-tail liability issues for more than two decades, with particular depth and breadth of experience relating to environmental, health hazard and asbestos liabilities – where we leverage our industry leading proprietary litigation and claims data and associated analytical forecasting models. We assist clients in a variety of capacities including understanding, quantifying, managing and mitigating the risks associated with these liabilities. Where circumstances and client objectives align, our risk mitigation advisory services can lead to advising clients on the development of custom risk transfer solutions.

PACE’s proprietary approach to asbestos liability estimation combines state-of-the-art research from the fields of medicine, epidemiology and demographics, including detailed labor statistics, with a thorough knowledge of the history and current status of asbestos litigation. We provide liability estimates for financial reserving, insurance valuation, M&A due diligence, alternative risk transfer and other purposes.

Our estimation modeling approach employs a consistent methodology but is flexible and can incorporate each client’s unique situation.

  • The model is organized by industry so that estimates can reflect incidence among workers in relevant industries and occupations.
  • The number of workers, fiber level and employment duration in specific cohorts can be tailored to reflect the specific history of the company in question.
  • It incorporates historical changes in hiring and exposure that affect future incidence.
  • It incorporates current demographics and life expectancy trends.
  • It incorporates and differentiates the different products and liability lines of business of the client.
  • It leverages PACE’s industry-leading proprietary data sets to ensure the most current and comprehensive understanding of the litigation.

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