RMS is talking to insurers with an eye to developing a model that can start gauging probabilities of widespread attacks as early as next year, said Andrew Coburn, a senior vice president with the firm. A working model, he said, could help insurers feel more confident in underwriting more of this kind of risk. “They’ve been writing relatively low limits,” he said. “It’s an issue that the insurance industry needs to grapple with.”
Dr Andrew Coburn is a Fellow of Cambridge Judge Business School, and Director of the External Advisory Board at the School’s Centre for Risk Studies.