AIR Worldwide Expands Terrorism Model Globally

September 12, 2016

Catastrophe risk modeler AIR Worldwide has expanded the capabilities of its terrorism risk model to support scenario testing for the United States and 27 other countries to help companies assess the impact of different attack scenarios on their portfolios and better manage their global terrorism risk.

AIR Worldwide is a Verisk Analytics business.

AIR’s Touchstone platform allows users to conduct deterministic loss analyses, a method of terrorism risk assessment that estimates losses to property and workers comp policies from defined attack scenarios. Touchstone 4.0 expands the deterministic terrorism loss modeling capabilities to include 27 countries in addition to the United States: Australia, Belgium, Brazil, Canada, China, Colombia, France, Germany, Greece, India, Indonesia, Ireland, Israel, Italy, Japan, Kenya, Lebanon, Mexico, the Netherlands, the Philippines, Russia, Singapore, South Africa, Spain, Thailand, Turkey and the United Kingdom.

Users can select a property from within their own portfolio, one of the targets in AIR’s U.S. landmark database or any user-identified target and then select a weapon type, such as a truck bomb, to test “what if” scenarios. AIR has developed damage functions to help companies understand the impact on their insured exposures given the size of the blast and urban density indices.

AIR’s database of potential targets has been updated to include additional U.S. corporate headquarters, professional sports stadiums, prominent buildings and hotels. The database of more than 64,000 targets includes approximately 100 “trophy” targets associated with a higher probability of attack.

AIR said it has also integrated terrorism risk index maps from sister company Verisk Maplecroft as a hazard layer into Touchstone, providing an assessment of terrorism risk at a subnational level based on incident data and severity of attacks during a specific reporting period.

Source: AIR Worldwide