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RMS Terrorism Risk Management Tools Assist the
Insurance Industry to Respond to A.M. Best Supplemental Rating
Questionnaire for the 2005 Statement Year
A.M. Best Requests Each Insurance Rating Unit to
Provide Specific Terrorism and Exposure Accumulation Benchmarks
Newark, Calif. – February 2, 2006 – Risk
Management Solutions (RMS), the world's leading provider of products and
services for the management of catastrophe risk, reaffirmed that its
products can assist insurers in responding to the terrorism section of
the 2005 Statement Year Supplemental Rating Questionnaire (SRQ) recently
issued by rating agency A.M. Best Company.
This is the third consecutive year that the SRQ has
included multiple questions on terrorism risk. In the questionnaire,
A.M. Best Company requests that insurers indicate whether they utilize a
terrorism model to measure their risk, report their largest levels of
accumulation, and model their losses for a specific terrorism scenario
both inside and outside of key cities.
Similar to prior years, the SRQ asks for results with and without
coverage from the federal Terrorism Risk Insurance Act (TRIA). In
December 2005, TRIA was renewed for two years with new terms and limits.
In response, RMS has updated the SRQ recommendations to model the new
TRIA coverage accurately.
“RMS is committed to offering functionality with the
flexibility to address needs across the insurance and reinsurance
organization,” said Derek Blum, vice president of emerging risk models
at RMS. “Our RiskLink® software includes the comprehensive property and
casualty modeling and the analytical capabilities required to help
clients effectively respond to the critical assessments of terrorism
risk required by A.M. Best.”
Functionality delivered through RiskLink allows
companies to perform a wide range of terrorism risk and accumulation
analyses required for the SRQ, including:
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Identify and quantify multi-line exposure accumulations within
specific buildings, using ultra high-resolution data for major urban
areas developed in conjunction with The Sanborn Map Company |
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Automatically locate a company’s top multi-line exposure
accumulations using a proprietary search algorithm (RMS® Spider
technology) |
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Automatically locate a company’s top multi-line terrorism loss
scenarios using the RMS Spider technology |
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Calculate exposure accumulations and loss estimates for a full range
of financial perspectives, such as gross loss, net loss after
reinsurance, and net loss after TRIA recoveries |
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Set up User Defined Cost Severity Schemes (in this case, as defined
by A.M. Best) |
For more information on accessing RMS technology for
use in completing the A.M. Best SRQ, please contact RMS at
info@rms.com.
Licensed clients can log in to download the recommendations:
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