Underwriting terrorism risk is a service that we should be talking about

by Jon Sonnenschein on September 20, 2017

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We live in a world where terrorism is a constant and unpredictable threat. Recent attacks have hit too close to home for some of us, and may make all of us feel powerless over our personal lives and businesses. Likewise, as insurers and insurance stakeholders, recent attacks remind us that we have to be smart about what we do to protect our livelihoods. It’s a business, yes, but it’s also a valued service.

By underwriting terrorism and political risk, you are providing a service that safeguards local economies in a time of erratic and unpredictable terror attacks. And, in order to do your job effectively, you need the tools to better select and price this type of risk—so you can help companies operate with assurance and peace of mind.

Cliche as it may sound, knowledge is power. And, with terrorist attacks becoming more frequent, we need this knowledge now more than ever. At SpatialKey, we’re committed to empowering insurers with the knowledge needed to mitigate this type of risk. That’s why we’ve collaborated with IHS Markit, the authority on terrorism and political violence risk data. While we can’t predict when something terrible is going to happen, we can arm ourselves with the intelligence needed to protect businesses which serve our economies and our livelihoods.

Visualizing and analyzing IHS Markit data from within SpatialKey’s platform allows insurers to easily identify and evaluate peak accumulations in their portfolios, as well as visualize any high-risk locations nearby. And, regardless of whether a company sustains property damage, it’s almost a guarantee that it will suffer losses due to operational interruption after an attack. In fact, more than 60 percent of the claims related to the Boston Marathon Bombing were under business interruption policies. Understanding all of this in the context of your portfolio is paramount to selecting and managing terror risk, while reducing potential downstream costs associated with claims. Without this data, your picture of risk is incomplete—and your ability to serve insureds is limited.

To learn more about how you can leverage IHS Markit data for underwriting, contact us today.

 

Topics: Analytics, terrorism, data partner, Data, terror underwriting, terror data, insurance data

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