Posts Tagged ‘terror’



October 22nd, 2014

Cyber Insurance

Posted at 1:00 AM ET

Cyber insurance has grown out of recognition that cyber-crime and data privacy are among the most concerning risks facing organizations today. With the increasing severity and frequency of cyber-attacks and data breaches worldwide, the demand for cyber-specific insurance is growing. Cyber-related risk to critical infrastructure and the overlap with cyber-terrorism are also issues that have come to the forefront.

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October 13th, 2014

Understanding Emerging Risks: Executive Summary

Posted at 1:00 AM ET

(Re)insurers today face a degree of change and uncertainty that appears to be evolving at an ever quickening pace. Guy Carpenter has published a report, Ahead of the Curve: Understanding Emerging Risks, highlighting emerging risks facing the (re)insurance sector, including cyber-attacks, terrorism and new compensation structures for long-term bodily injuries. The report seeks to identify and categorize these risks that are now confronting the sector, as well as analyze their implications on businesses and (re)insurers.

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September 29th, 2014

TRIPRA Renewal Proposals

Posted at 1:00 AM ET

The Republican-led Financial Services Committee in the House of Representatives put forward a draft proposal outline to reauthorize the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) on May 1, 2014. After further negotiations, the House Republican leadership presented the TRIA Reform Act of 2014 on June 11 that proposes a five-year reauthorization of the federal program (to the end of 2019) with a similar copay structure to that of the Senate bill. The full senate passed their committee’s recommended version 93-4 on July 17, 2014. However, a number of changes have also been proposed that have the potential to impact the market if fully implemented, including higher program triggers for non-nuclear, biological, chemical and radiological (NBCR) events, an increase to the recoupment rate and an enhancement to the program’s taxpayer repayment requirements. The table below outlines the different terms and durations that have been put forward by the Senate and the House.

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September 25th, 2014

RMS Global Probabilistic Terrorism Model

Posted at 1:00 AM ET

RMS released an updated Probabilistic Terrorism Model (PTM) in July 2012, version 3.1.2. The new model revised the annual frequency of a terrorist attack on US soil. No updates were made to geographies outside the United States.

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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.

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September 23rd, 2014

Commercial Terrorism Models

Posted at 1:00 AM ET

The catastrophe modeling companies have regularly updated their terrorism models over the years to reflect the changing threat landscape and help (re)insurers and other market participants perform robust terrorism risk assessments. Such updated products from RMS and AIR include:

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September 22nd, 2014

Terrorism Solutions: Modeling

Posted at 1:00 AM ET

To support the process of managing and underwriting the terrorism peril, (re)insurers utilize data management and modeling tools to analyze the risk. The dynamic nature of terrorism and the uncertainty in identifying targets and the frequency of attacks requires a specialized approach to manage the risk.

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September 18th, 2014

Terrorism Reinsurance Strategies

Posted at 1:00 AM ET

Even if the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) is renewed without wholesale changes, the recent organic growth in US nationwide workers compensation premiums as a result of rate rises and payroll growth is likely to cause insurance companies’ deductibles to increase. This in turn is likely to increase demand for terrorism reinsurance.

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September 14th, 2014

Cyber, Terrorism and New Compensation Structures Highlighted as Critical Emerging Risks

Posted at 10:30 PM ET

2014-sep-emerging-risk-cover-image-crGuy Carpenter today published a new report highlighting emerging risks facing the (re)insurance sector, including cyber-attacks, terrorism and new compensation structures for long-term bodily injuries. The report seeks to identify and categorize these risks that are now confronting the sector, as well as analyze their implications on businesses and (re)insurers.

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September 11th, 2014

TRIPRA Renewal

Posted at 1:00 AM ET

Marsh & McLennan Companies (MMC), the parent company of Guy Carpenter, strongly supports the reauthorization and modernization of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). MMC and Guy Carpenter consider the Act to be a model public-private partnership that has provided affordable and widely available terrorism cover. Thankfully, thus far, the federal government has not made any payments under Terrorism Risk Insurance Act (TRIA) and its successors. Non-renewal or a major change in the program would almost certainly affect existing TRIPRA coverage, standalone terrorism pricing and TRIPRA captive programs. In addition, the workers compensation market would be severely impacted from a capacity, availability and pricing basis.

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