istock-617572232-3
iStock/ Nzphotonz
4 March 2019Insurance

Chubb partners with Aon to build Manhattan terrorism risk model

Chubb has partnered with Aon's catastrophe model development center Impact Forecasting to develop a terrorism risk model for Manhattan in New York City and other densely populated areas.

The risk model works by using advanced computational fluid dynamics to simulate thousands of different types explosive attacks against buildings in the area. The simulations are combined with engineering information about the buildings' structural resistance and performance from the perspective of anti-terrorism standards. From this combined data it is possible to differentiate between facade and structural damage, determine the likelihood of a building collapse and identify the injuries and fatalities associated with the attack.

Chubb said the model will lead to more accurate estimates of property and workers' compensation losses.

"Despite tremendous advances in the underlying science over the past few decades, the catastrophe models available to insurers remain outdated," said Sean Ringsted, chief digital officer and chief risk officer at Chubb. "That's why we are so excited about our partnership with Impact Forecasting. By using the latest science and most sophisticated risk management tools, we gain unique insights into the risk profile in Manhattan. This will help us better assess and manage this critical exposure in our business."

Cristina Arango, catastrophe risk consultant at Impact Forecasting, said: "We have developed an approach that can be applied to any city across the world, quantifying the effect of modelling uncertainties to highlight the variation of the possible impacts. Our goal is to provide insurers with the insight and analytical tools to help them manage terrorism risk more strategically."

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

Investment firm files antitrust complaint against  AmTrust and Stone Point Capital 

Aviva picks new CEO in 'highly competitive process'

Enstar, Maiden terminate $2.68bn loss portfolio transfer deal

Arch Capital unveils strategic leadership changes

R&Q seals acquisition of NN Group's Nationale-Nederlanden

Download our whitepaper: 'Why Automation & AI Matters For Commercial Lines'

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
25 March 2019   Insurer Chubb has appointed Serene Neo as division head of accident & health (A&H) for Singapore. She will report to Scott Simpson, Chubb's country president for Singapore.
Insurance
5 March 2019   Aon has partnered with insurtech firm Skytek to monitor insurers’ marine risks and identify areas that require enhanced underwriting and reinsurance in real time.The development was driven by the rise of major container ports and mega ships, which expose re/insurers to risk accumulation during a catastrophe. To manage this risk monitoring vessel movements and estimating cargo accumulation has become critical for insurers.
Insurance
5 March 2019   US insurer Chubb has increased its stake in the Chinese Huatai Insurance Group creating the “first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture”, the company said.