Earthquake Model Predicts $7B in W/C

Since the events of September 11, companies underwriting workers compensation insurance are taking another look at the risks posed by catastrophes, both natural and man-made. Increases in reinsurance pricing and rating agency scrutiny are encouraging this re-examination. While the World Trade Center disaster increased industry perception of risk from man-made catastrophes, major earthquakes could also generate catastrophic levels of casualty claims. A recent report by Risk Management Solutions, the leading provider of catastrophe models to the insurance industry, indicates that workers comp lo...