Actuaries Estimate Potential Terrorism Costs

Claims News Service, April 3, 4:21 p.m. EST — The American Academy of Actuaries recently disclosed that a future large terrorist attack in New York City could result in $778 billion in insured losses.

The group spoke, according to a recent release, at the National Association of Insurance Commissioners’ public hearing on “Terrorism Insurance Matters,” where it provided scenarios of property/casualty and group life insurance losses as a result of various types of terrorist attacks. Among the potential insured loss situations estimated were from a conventional truck bomb terrorist attack as well as medium and large chemical, nuclear, biological, or radiological (CNBR) events caused by terrorism.