Terrorism Rating System Announced
NU Online News Service, April 2, 3:49 p.m. EST? A security solutions firm created by a group of former FBI and CIA officials, security directors, and prosecutors has developed a product to help insurers calculate premiums for terrorism coverage.
Fortress Global Investigations, based in New York City, said it has created the Terrorism Insurance Risk Profile, a proprietary tool designed to assess the level of threat and vulnerability of entities to potential acts of terrorism, and to calculate the risk of loss from those acts.
Robert Seiden, president of Fortress Global Investigations, said insurance carriers have been wrestling with how to set terrorism insurance premiums, "by offering TIRP to current and potential policyholders, insurance carriers will have a simple and reliable basis on which to assess these premiums."
TIRP runs each entity's profile through its scoring system. The profile is put together by former law enforcement and security officials who personally visit the site to be insured.
According to a statement by the company, this objective rating method protects the insured from being overcharged and protects insurers from being accused of price gouging, which is banned by the Terrorism Risk Insurance Act of 2002.
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