Newark Calif.-based Risk Management Solutions announced the launch of a Terrorism and Security Risk Manager online service, described as “a new information source for insurers writing global terrorism risk.”
To produce the service RMS collaborated with “Jane’s Information Group, the leading independent provider of defense and security information and is linked to the RMS(R) Global Terrorism Risk Model to provide up-to-date information on terrorism activity for insurers to use in their analysis of terrorism risk around the world,” said the bulletin.
RMS said the “data now available in the information service provides the clearest picture ever established of the growing activity rates of global terrorism. Terrorism activity increased for the third consecutive year in 2005, following a decrease in 2002 after the initial military phase of the global war on terror and the removal of the Taliban government in Afghanistan. In the past twelve months the number of ‘macro’ terrorism attacks (car bombs or worse) worldwide has more than doubled from the previous year.”
That total, however, excludes Iraq, where RMS said the “insurgency has increased to a rate averaging more than two damaging attacks a day during 2005.” It also notes that “terrorism activity continues to spread to more countries, with macro attacks occurring in more than 30 territories last year, compared to 20 the year before. In the past eight years, 76 countries have experienced some form of a macro terrorism attack.”
RMS and Janes categorized a complete catalog of 23,000 terrorism events over the past eight years “in order,” said the bulletin, “to provide insurance companies with a sophisticated online search engine to analyze data on targeting, attack modes, and activity trends in 228 territories worldwide. In addition, Jane’s has provided a unique analysis and scoring system of the counter-terrorism environment in each country, and provides news, analysis and commentary, profiles of terrorist and insurgent groups, and city risk tiering within each country.”
“Jane’s international network of correspondents and analysts deliver constant data feeds and assessments, which are now structured to meet the needs of risk analysts,” the announcement continued. The company said it has “been working with RMS since they began modeling terrorism risk, bringing our specialist understanding of weapons, asymmetrical warfare, and counter-terrorism to assist in the analysis. This co-branded information service is the logical extension of our partnership.”
RMS notes that it has “quantified the risk of terrorism to different types of property assets, business interruption, and human casualties in countries and cities throughout the world. Out of 228 countries, the analysis classifies 88 territories at moderate risk for terrorism property losses where the expected average losses exceed $2 million annually, and 35 territories as high risk with expected losses of more than $20 million a year. Some countries have higher casualty risk than property, so these are rated separately and combined in an overall classification of terrorism risk. RMS recently published a poster-sized map of global terrorism risk depicting the risk in each country. Copies of the map can be ordered on the RMS web site at http://www.rms.com.
RMS will also continue to analyze future trends and to involve a wide range of international experts in providing risk analysis. Peter Ulrich, managing director of enterprise risk management at RMS, commented: “The growing threat of terrorism, particularly in countries with significant insurance exposure, is of major concern to our international insurance clients. RMS has developed a suite of tools to help insurers manage their risk internationally, and this information service continues our commitment to providing world-class solutions. By partnering with Jane’s, RMS is able to provide the users of our global terrorism risk model with a constant picture of the latest risk information. Our software links directly to the site to help users update the model.”
For information about the Terrorism and Security Risk Manager online service, the RMS(R) Global Terrorism Risk Model, and other tools for managing terrorism risk, contact RMS at: firstname.lastname@example.org .
One can also consult: http://www.rms.com/2005LondonTerrorismSeminar to register for the RMS Seminar on Managing Terrorism Risk in 2006 and Beyond, taking place on October 21 in London.
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