David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President, Lucy Dalimonte, Senior Vice President, Ellen Rieder, Managing Director and Emma Karhan, Senior Vice President
AIR implemented significant model updates in version 13 of CLASIC/2TM, released in 2011. The updates impacted hazard components such as the target and landmark database, event frequency estimates and exposure and policy conditions.
AIR’s target and landmark database now includes approximately 300,000 landmarks and 100 high-risk trophy targets across the United States. In the version 13 release, several hundred new structures were added to the database to account for newly prominent and constructed landmarks.
AIR updated its frequency estimations in the release of version 13, using intelligence analytics and the AIR expert group threat assessment. The result was a significant fall in the number of likely events per year, causing a reduction in the average annual loss (AAL) of approximately 70 percent for property and workers’ compensation.
AIR also released software updates in version 13 that added flexibility in choosing analysis options. Examples include terror event fire loss covered under the standard fire policy as well as exclusions such as pollution and bacteria and virus resulting from nuclear, biological, radiological and chemical.
In 2012, AIR released version 14 of CATRADER® and CLASIC/2TM. Although no changes were made to the terrorism model in this update, standard yearly workers’ compensation benefit level updates were released to reflect the latest legislation and cost estimates for injury payments.