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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 at a target location. In the U.S., attacks can be modeled
at locations on a 3,914-site target list developed by RMS in conjunction
with a team of terrorism experts, or at any user-defined location.
Outside of the U.S., attacks can be modeled at any user-defined
location. 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 stand-alone 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.
Global Terrorism Risk Model
The Global Terrorism Risk Model, a stand-alone product, provides metrics
for the frequency and severity of terrorism losses in each of 228
countries and territories worldwide for use in the management of global
terrorism risk. The targeting preferences and risk patterns of terrorist
threat groups in each territory are reflected in the model. The
application supports country, location, and portfolio analyses for
property, business interruption, and human casualty coverages in all
countries and territories.
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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