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Meeting Terror Risk Modeling Challenge

Last Septembers attack on the World Trade Center revealed that insurance companies are heavily exposed to potential catastrophic losses from man-made perils, as well as from natural ones.

The WTC attack also showed that large losses could be simultaneously sustained across multiple lines of business, including commercial property, workers compensation, life, health, disability, aircraft hull and general liability.

The magnitude of these losses has driven the insurance market to a critical juncture and has had an enormous impact on the global economy. Insurers, reinsurers and corporations must resolve issues surrounding terrorism-related coverage, exclusion, deductibles and pricing in order to restore a stable risk management market.

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