September 24th, 2014

AIR US Terrorism Model

Posted at 1:00 AM ET

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. Several hundred new structures were added to the database to account for newly prominent and constructed landmarks.

AIR also 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.

Additionally, AIR released software updates in version 13 that added flexibility in choosing analysis options. Examples included 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, chemical or radiological (NBCR).

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 updated legislation and cost estimates for injury payments. In 2013, AIR released its next generation modeling platform, TouchstoneTM and also updated CLASIC/2 version 14 to version 15. There was no change in the terrorism model on either platform. 

 

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