In business and life, it’s important to know one’s strengths and weaknesses.
Executive Summary
While the insurance industry is adept at modeling windstorms, anticipating emerging liability risks and ensuring orderly financial recovery from insured perils, terrorism risk continues to defy conventional risk management strategies, says Swiss Re's Bill Donnell, who calls for long-term reauthorization of the TRIA program.While the insurance industry is adept at modeling windstorms, anticipating emerging liability risks and ensuring orderly financial recovery from insured perils, modeling the risk that terrorism presents is a more complicated task.
The terror threat continues to challenge the most astute experts and defy conventional risk management strategies. While risk modeling has improved our understanding of the consequences of an attack, it remains unequal to the task of determining the probability and frequency of the threat.
