Brussels Attack Highlights Need for Sophisticated Insurance Analytics Tools

by Sarah Stadler on April 4, 2016

Photo credit: REUTERS/Charles Plateau. Photo credit: REUTERS/Charles Plateau.

Sadly, the recent bombings in Brussels—just a few months after the attacks in Paris—are a grim reminder that terrorism has become a fact of life in Western cities.

For Property & Casualty insurers, this unfortunate reality means keeping terrorism risk top of mind when underwriting properties. The three coordinated explosions in Brussels—two at Zaventem Airport and one at Maelbeek metro station—underscore the complex nature of terrorism risk.

To help underwriters write terror risk with more confidence, SpatialKey has added concentric ring models that simulate realistic bomb blast scenarios and provide insurers with more accurate risk assessments.

Get a More Accurate View of Terror Risk

From a single, interactive environment, SpatialKey helps you quickly evaluate terror risk and the impact on your portfolio.

With the new concentric rings models, you can evaluate the worst case scenario—or peak accumulation—if an attack, such as a bomb, were to go off near prospective locations. The model simulates damage radiating away from a bomb blast, so you can see complete or partial damage diminishing as buildings get further away from the original blast site.

“We developed the concentric rings model because our clients and prospects recognized the need to consider terrorism risk in their underwriting and portfolio management processes,” explains SpatialKey Product Manager Angie Olivero. “And now they can differentiate the damages within different radii for a richer understanding of terror accumulations.”

SpatialKey Terror UW Concentric Rings

In addition, SpatialKey gives you the option to run your analysis based on specific metrics in your portfolio, on exposed limits, or on a specific area of interest within custom geographic extents.

And with the SpatialKey Accumulations app, you can dive deeper into terrorism risks using the Rings and Target features, which allow you to:

    • Identify and evaluate peak accumulations of exposure within your portfolio
    • Analyze your portfolio against activity, high-interest properties, or historical terror claims
    • Look at terror target datasets (locations identified as having terrorism risk such as skyscrapers, churches, train stations, etc.)

SpatialKey Terror UW Accumulations

And thanks to an advanced understanding of exposure concentrations, including where terror attacks are most likely to occur, you can analyze your current book of business and apply guidelines to select profitable new business.

What’s more, SpatialKey can help you evaluate the potential for claims given a recent or future terrorist attack. By considering attacks at credible terrorist targets, insurers can begin to understand their overall risk and formulate a claims response plan.

To learn more about how SpatialKey can help you feel confident writing terror risks and minimize the impact on your portfolio, contact us today.

Topics: Insurance, Underwriting, risk assessment

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