Aon Corp.’s subsidiary, Aon Re Inc., has unveiled two timely new models for workers’ compensation catastrophes. One covers all significant U.S. earthquake regions, and the second analyzes terrorism exposures for U.S. insurers, large employers and property owners.
Aon Re’s affiliate Impact Forecasting, which prepared the new models, indicated that the earthquake detail model utilizes work site level data, and provides insurers and large employers with “estimates of the range of potential injuries and deaths associated with a range of potential earthquakes in the U.S.,” including potential financial consequences.
The terrorism model presents “exposure analysis tools for U.S. insurers, large employers and property owners. The detail analysis tools utilize street address or zip code information to assess aggregations of property and workers’ compensation exposures and their relative proximity to a database of approximately 5,200 high visibility potential targets and over a million less visible but important landmarks or facilities,” said the bulletin.
“While there has been a significant effort since the events of September 11, 2001 to model the potential financial consequences of future terrorist attacks, the inability to credibly predict the frequency of such events have left insurers, large employers and property owners to simply manage aggregations of risks near potential targets,” stated Michael Bungert, President and CEO of Aon Re Inc.
“While we have helped our clients consider their combined workers’ compensation and property risk aggregations, the new tools we have developed analyze their relative proximity to a range of potential targets. The resulting relativity by type of potential target is an important first step in differentiating clients in a market that continues to struggle to provide meaningful insurance and reinsurance solutions for such risks,” he added.
Aon also issued a bulletin noting that its Albert G. Ruben Specialty Insurance Group has been in charge of handling the insurance needs for the “James Bond Franchise” for the last 40 years. Too bad Bond can only apply his skills in combating the world’s terrorists in the movies.