Business Services Industry

Editorial: Disaster planning crucial.(Opinions)(terrorism risk modeling)

Business Insurance, January, 2003

No risk manager likes to hear that his or her organization is located in a high-hazard area for terrorist acts, especially from the agency that advises property/casualty insurers on setting rates. So it's not surprising that a recent Insurance Services Office Inc. risk analysis is meeting criticism.

As Business Insurance reported Jan. 20, ISO's AIR Worldwide Corp. unit created a terrorism risk model that divided the nation into three tiers. The riskiest tier was deemed to include the District of Columbia, all five New York City boroughs, and the counties that include Chicago and San Francisco. District of Columbia Insurance Commissioner Larry Mirel objected to the district's classification and potential steep rate increases, noting that neighboring...

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