Terrorism models can help insurers. (Property/Casualty: Loss/Risk Management Notes).After marking the solemn sol·emn adj. 1. Deeply earnest, serious, and sober. 2. Somberly or gravely impressive. See Synonyms at serious. 3. Performed with full ceremony: a solemn High Mass. 4. one-year anniversary of Sept. 11, insurers can now use two new terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very models to analyze the financial impact of terrorist acts. Both Eqecat and AIR Worldwide have unveiled terror estimation models. The occurrence of attacks, the targets and the hierarchy assigned to the different modes of attack are quantified by independent experts and experts within ABS (Automatic Backup System) See backup program. Consulting. "Terrorism is a unique exposure and cannot be modeled using the same techniques currently used to model insurers' earthquake and hurricane exposure," said Dr. Mahmoud Khater, Eqecat's chief technology officer. The Eqecat model features a probabilistic (probability) probabilistic - Relating to, or governed by, probability. The behaviour of a probabilistic system cannot be predicted exactly but the probability of certain behaviours is known. Such systems may be simulated using pseudorandom numbers. set with more than 10 million events and hundreds of thousands of high-probability terrorism "target" sites. The model's property-damage functions are based on historical and test data, and engineering analysis with workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. vulnerability functions derived from extensive claims data. AIR Worldwide Corp.'s Terrorism Loss Estimation Model estimates the financial impact of insured property and workers' compensation losses from potential future terrorist attacks in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Karen Clark, president and chief executive officer of AIR, says the new model helps insurers and reinsurers quantify their risks, assess coverage and exclusions and estimate the financial impact of the attacks. The model analyzes various threats posed by domestic extremists, formal international and state-sponsored terrorist organizations. The model compiled a database representing a full range of topics including landmark properties such as bridges and "trophy" targets. The model can also perform analyses to estimate losses across multiple lines of business. |
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