Aon Corporation’s subsidiary, Aon Re Inc., in conjunction with its catastrophe modeling unit, Impact Forecasting, recently completed the first probabilistic catastrophe risk analysis of a combined portfolio of life, accident, and property risks for a major insurer. The analysis also included an evaluation of the risk to property investments made by the insurer within its investment portfolio.
“The Impact Forecasting model helped our client evaluate the terrorism risk that exists on both sides of the balance sheet,” Roger Smith, managing director of Aon Re’s Accident & Health Reinsurance Practice, remarked. “Many client companies are looking at their catastrophe exposures at a corporate level as well as a profit center level.”
Smith added, “Since completing the first analysis of life and accident risk in the first quarter of 2002, we have worked with Impact Forecasting to customize its model to address the specific needs of life and accident insurers.”
In the life, accident and health field, Aon Re and Impact Forecasting have completed studies of risk concentration from loss of life and injury as a result of natural perils and terrorism.
Aon Re and Impact Forecasting have also completed more than 60 studies of terrorism and earthquake risk on both workers’ compensation and property portfolios.