Report Explores the New Frontier of Catastrophic Risk Exposures for the Insurance Industry

April 7, 2004

Increasingly, life and health insurers are underwriting man-made catastrophic risks involving deaths and disabilities resulting from terrorists making use of nuclear, biological and chemical weapons, according to the latest LOMA study on risk exposure for the insurance industry.

“The New World of Risk describes these risk exposures in detail and the efforts being made by the U.S. government and other institutions to control them,” said Stephen W. Forbes, Ph.D., FLMI, senior vice president of research at LOMA, and report author.

The report also reviews catastrophic loss exposures involving technological networks, a continually expanding universe of legal liability, and global risks that affect all insurance companies and U.S. businesses.

“Fortunately, there are actions available in both the public and private sectors that can significantly reduce these catastrophic risks,” said Forbes. “The insurance industry has an important role to play in encouraging the implementation of the many well-thought-out methods that are available to improve the risk environment.”

Topics in The New World of Risk include:

A detailed analysis of nuclear terrorism and the methods being used to reduce this threat;
The implications of biological and chemical warfare for the life and health insurance industry;
The expanding universe of legal liability, including increasing tort liability and fiduciary responsibilities for directors and officers;
Expanded risks involving the global economy, including risks in international outsourcing; and
Minimizing damage from attacks on technological networks.

The 123-page LOMA report was written for senior-level executives, line managers, and staff managers who deal with risk management. For more information, telephone 770-984-3784 or e-mail membrel@loma.org.

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