Terrorism insurance - Modelling the unthinkable

In November, the US government passed a law requiring all insurers to underwrite terrorism risk, forcing them to find a way to price this exposure. Could terrorism risk models be the answer?

When Boston-based catastrophe modelling company AIR Worldwide placed Washington DC in the top tier of its three-tier terrorism risk assessment at the end of last year, Lawrence Mirel, the District of Columbia's chief insurance regulator, complained. Attempts to model terrorism risk are inherently unreliable, he argued, since they rely on insufficient data that purports to quantify human behaviour.

Unsurprisingly, modelling companies say this isn't the case, arguing that it is in fact possible

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The changing shape of risk

S&P Global Market Intelligence’s head of credit and risk solutions reveals how firms are adjusting their strategies and capabilities to embrace a more holistic view of risk

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here