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Solutions The nature of
terrorism risk is different from natural perils, and uncertainty in the
identification of terrorist targets and frequency of attack dictate a
different approach to the management of terrorism risk. RMS has
developed a suite of products that can be used to analyze terrorism risk
from a number of angles, allowing risk managers to triangulate on the
risk. Exposure Accumulation
Exposure accumulation functionality embedded in RiskLink® and
RiskBrowser® allows users to identify and quantify multi-line
concentrations of business in any user-defined radius using an
optimization algorithm. Sanborn CitySets® Building Data provides the
ability to locate addresses within a specific building and can provide
missing building attribute information (construction type, height, etc.)
in high-risk urban areas. Concentrations of exposure can be identified
and quantified anywhere in the world.
Terrorism Scenario Model
The Terrorism Scenario Model, available in RiskLink®, allows users to
model multi-line losses arising from scenarios of any of 32 attack modes
modeled by RMS. Attacks can be modeled at over 9,000 high-risk potential
terrorist targets across North America, Europe, and Asia, or at any
user-defined location. The target list has been developed by RMS in
conjunction with a team of terrorism experts, In addition, RMS has
developed an algorithm to systematically identify the target location(s)
that would lead to the worst possible losses for a given attack mode and
portfolio.
Probabilistic Terrorism Model
The Probabilistic Terrorism Model, a standalone product, produces fully
probabilistic output consistent with the RiskLink® natural peril models
(OEP/AEP, AAL, event loss table). Given the dynamic nature of terrorism
risk, along with the fact that typical insurance policies are in force
for one year, it is highly likely that the threat level will change over
the course of the year. Therefore, the model provides alternative Risk
Outlooks that allow the user to incorporate potential
increased/decreased threat levels in order to perform “what-if”
probabilistic analyses. OEP and AEP results from the model can also be
combined with RiskLink natural peril EP results.
Consulting RMS consulting services can also assist
with quantification of accumulations and potential losses. RMS has
helped insurers, reinsurers, brokers, corporations, and government
entities perform the following:
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Analyses of multiline exposure accumulations |
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Loss modeling for property, workers comp, and life and health lines
of business |
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Evaluate pricing structures |
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Assess underwriting guidelines and risk scoring |
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Terrorism risk securitization |
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