New terrorism risk models pitched at sceptical insurers

Three terrorism risk models have debuted, each taking a different approach or combination of approaches to estimating exposures to events such as last year’s September 11 terrorist attacks. But insurers – the intended clients – have not embraced the tools yet, as many have stepped back from covering terrorism risk, or have priced it high enough to ensure only minimal business. The modellers hope to change that.

These firms argue that if the probability of a terrorist attack could be measured

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