Verisk’s AIR Updates Its Terrorism Model to More Comprehensively Model Damage from Conventional Bomb Blast Attacks

Rhea-AI Summary

AIR Worldwide has updated its U.S. Terrorism Model to better assess damage from conventional bomb blasts. This model calculates property damage, workers’ compensation, and personal injury based on blast size and building characteristics. It features advanced 3D Computational Fluid Dynamics for accurate blast propagation analysis, offering detailed insights into potential losses for insurers. The update is timely, considering ongoing terrorism threats, and incorporates lessons from past incidents, including the Oklahoma City bombing and the Nashville bombing in December 2020.

Positive

• Enhanced U.S. Terrorism Model improves accuracy in estimating damage from bomb blasts.
• Utilizes advanced 3D Computational Fluid Dynamics for refined blast intensity analysis.
• Helps insurers better understand potential losses from terrorism-related incidents.

Negative

• Continued threat of terrorism may lead to increased claims and insurance costs.

BOSTON, June 22, 2021 (GLOBE NEWSWIRE) -- Catastrophe modeling firm AIR Worldwide announced that it has updated its Terrorism Model for the United States to more comprehensively model the extent of damage from conventional bomb blast attacks. Starting with the size and location of the bomb, the model propagates the appropriate blast intensity within a built environment from the exterior to the interior of buildings to yield damage and loss estimates, including property damage and workers’ compensation, and personal injury. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.

“When terrorists use conventional weapons—the effects of which tend to be highly localized—they are likely to be targeting specific buildings or facilities,” said Tao Lai, vice president, research, AIR Worldwide. “The amount of damage that occurs at or near the site of an attack depends on a wide variety of factors. In addition to the type of weapon used, the surrounding buildings, building dimensions and blast intensity propagation can have a profound effect on the damage from an attack.”

Using the AIR Model for Terrorism, (re)insurers can estimate the potential property, business interruption, workers’ compensation, and personal injury losses that can arise from acts of terrorism in the U.S. The deterministic event modeling capabilities in Touchstone^® allow clients to select a blast size and location to analyze the impact it will have on their specific book of business.

A distinctive feature of the AIR U.S. Terrorism Model's blast intensity and damage calculation methodology is the explicit consideration of blast intensity propagation in different built environments within a building. As part of the new model, AIR used 3D Computational Fluid Dynamics simulations to ensure more accurate blast intensity propagation reflecting the configuration and proximity of buildings in a variety of urban environments. Vulnerability accounts for both overpressure and pressure impulse outside and inside a building, which inform the estimation of building damage, contents damage and personal injury. Because damage is calculated through the aggregation of cells and blast intensity is modified both as it enters the structure and as it travels through the interior, model users can obtain detailed loss results for a specific floor of interest.

“The threat of terrorism continues to rise and managing risk from terrorism has become an essential part of business,” continued Lai. “Updates to the AIR Terrorism Model for the United States include enhancements to the modeling of conventional bomb blast attacks. In particular, the updated model can produce a more realistic damage extent for various forms of blast attacks, including the Oklahoma City bombing which was estimated to have had the energy of approximately 4,000 lbs. of TNT and damaged 324 structures within a five-block radius.”

The updated model also reflects learnings from the detonation of a recreational vehicle bomb in downtown Nashville, TN on December 25, 2020, a reminder that this form of blast attack remains a very real threat.

About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.

About Verisk
Verisk (Nasdaq:VRSK) provides predictive analytics and decision-support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social and governance (ESG) matters. Celebrating its 50^th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook and YouTube.

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FAQ

What is the purpose of the AIR updated U.S. Terrorism Model for Verisk (VRSK)?

The updated model helps estimate potential damages from terrorism-related incidents in the U.S., including property and personal injury losses.

What are the key features of the new U.S. Terrorism Model launched by AIR Worldwide?

It includes advanced damage estimation capabilities using 3D Computational Fluid Dynamics to analyze blast intensity in various built environments.

How does the updated terrorism model impact insurers and reinsurers?

Insurers can accurately assess the potential impact of bomb attacks on their specific book of business, allowing for better risk management.

What recent events influenced the updates to the AIR U.S. Terrorism Model?

The model was updated based on insights from the Oklahoma City bombing and the Nashville bombing incident from December 2020.