Lockton Report Reveals What Catastrophe Models Didn’t Show About Superstorm Sandy
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The article – "Catastrophe Models: Learning from Superstorm Sandy" -- explains what can be done to supplement modeled outputs that don't consider the indirect losses caused by power outages and other systemic problems that interrupt business activities.
Sandy devastated the electrical and transportation network throughout the Northeast U.S., generating substantial business interruption claims. Although catastrophe models quantify "direct" business interruption, incorporating business interruption losses into model estimates can be difficult.
"Insurance policies can be so nuanced as to what covers a loss or when you can claim on those business interruptions," explained
"Insurance professionals must recognize the deficiencies in catastrophe models and supplement where needed," Tennis said. When key drivers of loss are ignored, companies may go unprotected. Models provide valuable information, but they don't always provide a comprehensive view of catastrophe risk. That task falls to an experienced insurance professional.
The full article is available free at www.lockton.com or at http://www.lockton.com/Insights-And-Publications/White-Papers/Catastrophe-Models-Learning-from-Superstorm-Sandy
More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in
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