Extreme Event Risk

Terrorism Models

Verisk Terrorism Models help you estimate losses to support pricing and underwriting decisions down to the individual policy level.

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Discover hidden risks and manage exposure

Global terror remains an important risk for the insurance and reinsurance industry, particularly given heightened geopolitical sensitivities. Improved risk and capital management require a more thorough understanding of historical losses, as well as what they could mean given today's threats and exposures.

Generate multifaceted policy and portfolio loss estimates

Explore the impacts of extreme events that have no historical precedent, including conventional bomb blasts; chemical, biological, radiological, and nuclear (CBRN) weapons; and airplane crashes.

Run three types of analyses with one model

Evaluate terrorism risk deterministically, probabilistically, and geospatially, all on a single platform for a comprehensive assessment.

Manage exposures anywhere in the world

Run a ring analysis with user-defined damage ratios, dynamic ring analysis, or by using terrorism risk maps and indexes from Verisk Maplecroft.

Test international deterministic loss scenarios

Select a known location in 27 countries, or a target in Verisk’s landmark database, and choose from a variety of weapon types to test custom “what-if” attack scenarios.

Consider the impact of blast intensity and damage on losses

Get damage and loss estimates that reflect the size, location, and intensity of conventional bombs inside buildings—from the exterior to the interior.

Available Regions

Verisk can analyse terrorism risk both deterministically and probabilistically in any country, on a consulting basis.

Americas

Canada
United States
Mexico
Colombia
Brazil

EMEA

Belgium
France
Germany
Greece
Ireland
Italy
Netherlands
Russia
Spain
UK
Turkey
Israel
Lebanon
Kenya
South Africa

APAC

Australia
China
India
Indonesia
Japan
Philippines
Singapore
Thailand

Features and capabilities

Supported geographic resolution

The modelling framework simulates damage at a fine and realistic resolution: latitude/longitude at 1km for the entire United States, plus finer ZIP Code resolution for 15 metropolitan areas.

US landmark database

This data set includes prominent buildings, headquarters of Fortune 500 companies, transportation hubs, sports venues, government buildings, and medical and educational institutions, plus 100 “trophy” targets with a high probability of being attacked.

500,000-year stochastic catalogue

A catalogue this large helps reduce uncertainty in the variability of losses.

Dozens of supported construction types

The models support 45 construction classes, 110 occupancy classes, and five urban density classes.

Broad support for policy conditions

The models support policy conditions like franchise deductibles, coverage limits, loss triggers, and risk-specific reinsurance.

Lines of business supported

Residential, commercial/industrial property, mobile home, automobile, and workers’ compensation lines of business are supported.

Detailed loss results

Loss calculation framework and cellular damage aggregation approach permit detailed loss results for a specific floor of interest.

Related resources

Improved risk and capital management require a more thorough understanding of historical losses, as well as what they could mean given today's threats and exposures.

Documentation

Extreme Event Solutions Client Portal

Access client-confidential downloads, training, and documentation for Verisk's extreme event solutions model, software, and service offerings.

White paper

Everything You Need to Know About PCS

This methodology paper includes information on the PCS Global Terror model and its expected future approaches to the impact of terrorism on the reinsurance market.

Download the brochure

Article

Verisk updates terrorism model for US

Learn how our models will help reinsurers estimate the potential property, business interruption, workers’ compensation, and personal injury losses that can arise from acts of terrorism in the US from conventional bomb blasts.

Read on Insurance Business

About Catastrophe Modeling

In the case of rare but severe events, historical loss information is often unreliable in assessing future loss potential - that's where catastrophe modeling comes in.

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General trainings

Certified Extreme Event Modeler (CEEM) Training

Gain insight into the science behind natural catastrophes and a behind-the-scenes look at how catastrophe models are developed and validated.

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Research Publications

Verisk Extreme Event Models are developed by experts constantly innovating and driving discovery. Learn more about their groundbreaking work.

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Do more with the Verisk ecosystem

Our sophisticated modeling tools and data play an increasingly important role in helping companies evaluate and manage their terrorism risk.

The most up-to-date terroristic activity index

This tool combines the frequency and intensity of five years of attacks with an assessment of the threat posed by active terrorist groups, and whether counterterrorism forces in the country have the capacity to deal with this risk.

Learn about Verisk Maplecroft’s Terrorism Index