BOSTON, September 12, 2016 — Catastrophe risk modeling firm AIR Worldwide (AIR) announced that it has expanded the capabilities of its terrorism risk model to support scenario testing for the United States and 27 other select 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 (Nasdaq:VRSK) business.
“The AIR Terrorism Model now supports deterministic modeling of conventional weapon attacks in countries across the globe,” said Shane Latchman, assistant vice president at AIR Worldwide. “In addition, in this latest release, estimates of the frequency of attacks in AIR’s probabilistic U.S. Terrorism Model have been updated to reflect the current threat. Together, the updated model provides a comprehensive view of the global terrorism risk landscape.”
AIR’s Touchstone® platform enables users to conduct deterministic loss analyses, a method of terrorism risk assessment that estimates losses to property and workers’ compensation policies from defined attack scenarios. In Touchstone 4.0, released in June, AIR’s deterministic terrorism loss modeling capabilities have been expanded 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 robust damage functions to help companies understand the impact on their insured exposures given the size of the blast and urban density indices. The loss estimation functionality complements existing accumulations management capabilities within Touchstone, including dynamic ring analysis, for property and workers’ compensation exposures.
To estimate attack frequencies, the probabilistic AIR U.S. Terrorism Model incorporates newly updated and detailed operational threat assessments made by a team of counterterrorism experts with decades of experience working for the FBI, CIA, Department of Defense, and other government bodies. And AIR has updated its comprehensive database of potential targets 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 has also recently integrated terrorism risk index maps from sister company Verisk Maplecroft as a hazard layer into Touchstone. The indices provide an assessment of terrorism risk at a subnational level based on terrorism incident data and severity of attacks during a specific reporting period.
“Modeling this complex and dynamic global threat requires a comprehensive solution,” said Rob Newbold, executive vice president at AIR Worldwide. “A complete terrorism risk analysis must include three components: accumulations analysis, deterministic analysis, and probabilistic loss analysis. Touchstone offers all three.”
Probabilistic modeling capabilities are currently available in the Touchstone 4.0 and CATRADER® Version 18 catastrophe risk management systems. The deterministic modeling solution for countries outside the United States is featured in Touchstone 4.0.
About AIR Worldwide
AIR Worldwide (AIR) provides catastrophe risk modeling solutions that make individuals, businesses, and society more resilient. AIR founded the catastrophe modeling industry in 1987, and today models the risk from natural catastrophes, terrorism, and pandemics globally. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk Analytics (Nasdaq:VRSK) business, is headquartered in Boston with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.