Is included in version 9.5 of cat risk management system
AIR Worldwide has announced the release of its updated US terrorism model, available in Version 9.5 of its catastrophe risk management systems.
The release of the new US terrorism model incorporates the results of two years of research into the effects of conventional bomb blast in complex urban environments.
Since urban density can have a significant impact on the effects of a bomb blast, AIR has enhanced its damage functions to account for the varying impact of bombs in relation to the density of properties in close proximity, to better reflect the local building environment for all locations in the U.S.
“AIR’s US terrorism model can assist insurers in evaluating their terrorism risk and perform detailed loss analyses to identify high concentrations of potential loss in small areas such as city centers,” said Jack Seaquist, senior manager at AIR Worldwide.
“Additionally, the model enables insurers to perform a fully probabilistic loss analysis that considers the full range of likely attack locations and weapon type combinations, estimates the losses and assigns an estimated probability to each level of loss.”
“As catastrophe models become more sophisticated and detailed, the exposures used as input to the models need to be more accurate and at higher resolution,” continued Seaquist. “This is particularly true for the terrorism model, where the effects of an attack can be highly localised and street address information, including the physical attributes of properties has become almost essential.”