Economics & Statistical Consulting/Liability Forecasting
Defective or tainted products are not new to the global marketplace, but recent events with high visibility consumer products reaching our pets and kids are bringing new scrutiny and attention to product liability, product recall and corporate risk governance. Navigant has over 20 years of liability estimation and forecasting experience. Our approach provides clients with answers beyond those of traditional estimation methodologies. We offer clients the flexibility to explore “what if?” questions during the planning and decision process for strategies and investments. We combine state-of-the-art research from medicine, epidemiology and demographics with knowledge of the history and current status of litigation and our client’s specific liability experience. We also use well-accepted statistical and econometric methods to investigate analytical benchmarks and test key hypotheses related to the forecast problem.
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Recent State Tort Reforms & Legal Decisions: Better News for Asbestos Defendants?
The John Liner Review, Winter 2007
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Navigant has been retained by companies considering strategic alternatives in managing liabilities for financial reporting purposes; investors engaged in the due diligence process; debtors and creditors involved in bankruptcies; industry groups evaluating the potential impact of legislative initiatives; affirmative and rebuttal testimony; and insurers assessing exposure to policyholders. The diversity of our client base reflects the flexibility and broad applicability of our approach. We provide:
- Estimates of numbers, disease types and timing of future claims
- Evaluation of the efficiency of prior claims experience
- Projection of disease incidence and analysis of medical outcomes, latency and exposure rates
- Estimates of the value of pending and future claims
- Estimates of gross and net liabilities for pending future claims
- Long-term forecasts of liabilities under various scenario assumptions
- Analysis of jurisdictional, legal and company defense strategy changes
- Analysis of cash flows and liabilities net of insurance recoveries
- Evaluation of strategies to settle versus litigate claims
- Identification of factors influencing settlement amounts in various jurisdictions (e.g., punitive damage awards, jurisdiction and disease type)
