Risk Management Solutions (RMS) said it has updated its terrorism risk model to include international cities of interest to the insurance industry.
The International Probabilistic Terrorism Model (PTM) now includes risks in the cities of London, Rome, Milan, Toronto, Montreal, Ankara, Istanbul, Dublin and Copenhagen. "The selection of cities is driven by a combination of terrorist activity levels and the concentration of high-value insured properties, such as skyscrapers, stadiums and Fortune 100 companies, which dictates market interest," said Maria Lomelo, director of Emerging Risk Solutions at RMS.
"The model now accounts for the network structure of terrorist supporters, advocates and active terrorists, and how authorities track and intercept attacks. Understanding the interdiction process is essential to modeling the probability of successful attacks," RMS said.
"Over the past year we have seen high levels of terrorist activity, with most plots having been foiled. The more ambitious the terrorists' plan, the more operatives it is likely to include--therefore making the plot more susceptible to interdiction," said Dr. Gordon Woo, catastrophist at RMS. "The terrorism risk in the cities covered by the new model drives the need for a terrorism risk solution in those regions."
RMS said it has also made revisions to its vulnerability and hazard modules, which now incorporate new information from recent attacks and academic studies to improve understanding of the vulnerability of human exposure, property and business interruption from various attack modes.
