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  Paper Details                 Browse papers by sector
Understanding Terrorism Risk
Author            :Dr. Gordon Woo      Contact The Author
Designation    :PhD, Catastrophist
Company        :Risk Management Solutions, Inc.
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The objective of this report is to convey a wider understanding of terrorism risk. Before 9/11, a qualitative approach sufficed for terrorism underwriting. But for insuring against Al Qaeda, whose threats of violence acknowledge no political nor moral restraint, a more formal analytical methodology is demanded. This methodology has evolved since 9/11, in response to US insurance industry concerns about the viability of terrorism underwriting, and subsequently the passage of TRIA, the Terrorism Risk Insurance Act. In expounding the principles which form the basis for an understanding of terrorism risk, special attention is given here to the perspective of those whose job it is to decide on insurance protection against terrorism, notably commercial lines insurance buyers andtheir advisors.

Reprinted with Permission from Risk Management Solutions, Inc.

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