In a related article, “From Sinkholes to Tsunamis: Assessing Nonmodeled Risks That Matter to Your Company,” Hanover Insurance Group’s Prateek Chhabra gives a step-by-step guide to identify, assess, quantify and incorporate nonmodeled risks into a carrier’s risk management framework.

The accompanying graphic highlights techniques Chhabra’s proposes for quantification of three types of nonmodeled perils: