AIR Catastrophe Risk Engineering Services Enable Risk Managers, Insurers and Property Owners to Assess the Financial Impact of Catastrophes on Individual Structures

San Diego, April 19, 2004 — AIR Worldwide Corporation (AIR) announces the launch of Catastrophe Risk Engineering, a new consultative service that analyzes high-value or strategically significant properties to estimate potential human, financial and property losses in the event of a catastrophe. AIR's Catastrophe Risk Engineering analyzes the risk from terrorism, earthquakes and severe windstorms to help corporations and insurers develop strategies to minimize the impact of extreme events on mission-critical structures.

"Catastrophe Risk Engineering provides much more than a run-of-the-mill probable maximum loss or engineering analysis. It entails a detailed scientific and engineering analysis that couples the likelihood of extreme events impacting specific structures with an in-depth evaluation of the consequences," said S. Ming Lee, senior vice president at AIR Worldwide Corporation. "Catastrophe Risk Engineering helps clients make informed decisions about their most valuable or critical properties."

Results from a Catastrophe Risk Engineering analysis can be used to evaluate and potentially lower the cost of property and workers compensation insurance by identifying appropriate loss-mitigation measures. In addition, results can be used to perform cost/benefit analyses of proposed retrofit measures, assess potential business interruption losses and evaluate the life-safety qualities of structures.

AIR's Catastrophe Risk Engineering is designed for risk managers, insurers and property owners. It takes a multipronged approach, combining site surveys, risk modeling and engineering analysis to assess the risks from these extreme events:

  • Terrorism – In partnership with Michael Stapleton Associates, an on-site security analysis is conducted to identify existing counterterrorism measures and recommend additional security measures at the property. The results are analyzed using AIR's Terrorism Loss Estimation Model to determine the impact of existing and proposed security measures on potential property and casualty losses from a terrorist act on or near the structure.
  • Earthquake – AIR engineers perform an on-site structure inspection and a thorough review of blueprints to understand the true nature of the structure's vulnerability to ground motion. After a three-dimensional computer analysis, reliable estimates of potential losses are made based on how the structure will respond to seismic waves of different intensity.
  • Severe wind – Using advanced engineering principles, AIR conducts a detailed analysis to determine a building's response to severe winds. The analysis considers all aspects of the wind hazard affecting the building, as well as individual building characteristics, such as the construction type, roof covering, cladding and window protection.
"AIR's Catastrophe Risk Engineering provides tangible results that can be immediately applied to risk professionals' most pressing decisions regarding extreme events," Lee continued. "By employing advanced decision analysis techniques that enable clients to choose rationally among risk management alternatives, Catastrophe Risk Engineering positively impacts a corporation's bottom line and long-term viability."

 

About AIR Worldwide Corporation
AIR Worldwide Corporation (AIR) is a leading risk modeling company helping clients manage the financial impact of catastrophes and weather. Utilizing the latest science and technology, AIR models natural catastrophes in more than 40 countries and the risk from terrorism in the United States. Other areas of expertise include site-specific seismic engineering analysis, catastrophe bonds and property replacement cost valuation. Founded in 1987, AIR offers its insurance, reinsurance, corporate and government clients a complete line of risk modeling software and consulting services that produce consistent and reliable results. Headquartered in Boston, AIR has additional offices in North America, Europe and Asia. For more information, please visit www.air-worldwide.com.

About ISO
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides data, analytical and decision-support products; consulting; data processing; and technical, statistical and actuarial services. ISO field services include on-site rating and underwriting services and the evaluation of community loss-mitigation efforts. ISO's products help customers with sales and prospecting, underwriting, rating and quoting, customer management, policy administration, product development, claims administration and fraud detection. Through its ISO Claims Services, Inc. (iiX unit) and IntelliCorp subsidiaries, ISO provides motor vehicle reports and criminal-records information and through its AscendantOne unit delivers rating, quoting and policy-administration solutions. Solutions from ISO's Quality Planning Corporation (QPC) subsidiary enable insurers to identify auto premium leakage and recover lost premium. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com

Mike Gannon (AIR)
617-267-6645