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Traditionally, the pricing of terrorism risk has been discovered from the balance of supply and demand in the insurance market, rather than evaluated from actuarial principles. Risk selection through the use of site security surveys has helped reduce the number of inferior risks, and systematic portfolio risk aggregation has limited the Probable Maximum(More)
The procedure for estimating Probable Maximum Loss (PML) for natural catastrophes has evolved over the past few decades from a rather simplistic deterministic basis to a more sophisticated methodology based on loss exceedance probability curves, generated using catastrophe modelling software. This development process is reviewed, with an emphasis on the(More)
The World Trade Center disaster was a stark reminder to the insurance industry of the potential dire consequences of accumulating high concentrations of insured value and underestimating a hazard to which they are exposed. By imposing strict coverage limits, or stopping to offer terrorism cover for large commercial policies, initial steps can be taken to(More)
INFECTIOUS diseases are a leading cause of death worldwide, accounting for a quarter to a third of all mortality. In most industrialised countries, infectious disease ranks after cancer and heart disease as a leading cause of mortality. Despite developments in pharmaceuticals, infectious disease rates are rising due to changes in human behaviour, larger and(More)
Consider a terrorist network actively planning a number of major terrorist attacks against the US homeland. Depending on which nodes in the hierarchy are removed by counterterrorism forces, the attack plans can be disrupted to a greater or lesser extent, forcing them to be delayed, or perhaps abandoned if certain critical nodes are taken out. According to(More)
As with Hurricane Andrew in 1992, and the Northridge Earthquake in 1994, the terrorist attack on the World Trade Center on September 11, 2001, has resulted in major advances in the quantification and management of a class of catastrophe insurance risks. The control of accumulations of exposure in urban areas is a basic principle of insurance portfolio(More)
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