Aon Corporation’s subsidiary, Aon Re Inc., announced that its catastrophe modeling affiliate Impact Forecasting has completed development of its workers’ compensation catastrophe model for all significant U.S. earthquake regions.
The detail model that utilizes worksite level data 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. The financial consequences of these potential injuries and deaths are also projected by the model. An aggregate model that operates on less granular data has also been completed.
Building a competent tool to estimate these exposures for insurers and large employers has been a top priority for Aon given the significant change in the cost of insurance and reinsurance protection for potential worksite catastrophes.
After several months of testing the model along with leading workers’ compensation insurers, Aon Re reports it is now uniquely positioned to help clients understand, manage and mitigate through risk transfer and risk financing products the potential negative financial effects of worksite catastrophes caused by earthquakes.