New terrorism risk modeling software launched at RIMS annual conference

Towers Watson launched a new terrorism risk modeling software at the Risk and Insurance Management Society (RIMS) 2013 Annual Conference in Los Angeles this week.

The new predictive modeling software, Sunstone, is designed to predict a broad range of attack types, and promises to provide a better reflection of the potential terrorism risk exposures to events in developing countries.

It also allows users to adjust threat-weighting inputs according to the sensitivity of specific types of attack, the geographic balance of a company’s operations and its broader risk appetite. Cost-severity factors can also be varied for analyses of life and workers compensation portfolios.

Commenting on the launch, Towers Watson managing director of the crisis management group Paul Bassett said: “There is recognition that, understandably, after 9/11, there was a focus on large-scale urban jihadi terrorism. However, many of the larger claims in this class in the last five years have actually come from emerging market areas like North Africa or Southeast Asia and from events that sit more at the political violence end of the spectrum”

The firm’s crisis management consulting director Chris Holt added: “Our focus has been on creating a product that considers the broad scope of both known and emerging threats, and reflects the complex and changing nature of global terrorism for a wide range of clients.

“Our terrorism experts have considered the evolving nature of the threat and with the support of catastrophe modelers, have projected this into a range of attack and target types that might be anticipated in years to come.”