Another Terror Risk Model: AIR

With the Senate's passage of the Terrorism Risk Insurance Act of 2002, all commercial property and casualty insurers are required to cover losses due to international terrorist activity within the United States. For the first time, insurers are being forced to make difficult pricing decisions regarding terrorism risk. The Terrorism Loss Estimation Model released in September by AIR Worldwide Corporation (AIR) is designed to help P&C insurers meet the requirements of the new legislation. The fully probabilistic AIR model estimates property and workers' compensation losses from possible future t...