Verisk Unveils First-of-Its-Kind SRCC Catastrophe Model for the U.S. to Quantify Political Violence Risks

Core Insights - The insurance industry has faced over USD 10 billion in insured losses from strikes, riots, and civil commotion (SRCC) since 2010, significantly higher than the less than USD 1 billion attributed to terrorism [1][2] - Verisk has introduced the first catastrophe model specifically for SRCC events in the U.S. to help insurers quantify financial impacts and enhance risk management strategies [1][4] Group 1: Financial Impact of SRCC Events - Since 2010, global insured losses from SRCC events exceed USD 10 billion, while terrorism-related losses are below USD 1 billion [2] - In the last six years, five SRCC events have each caused over USD 1 billion in global insured losses [2] - The U.S. has experienced approximately USD 3 billion in insured losses from SRCC events [2] Group 2: Verisk's SRCC Model - The SRCC Model features a 500,000-year stochastic catalog that assesses the frequency and severity of unrest across every ZIP Code in the U.S. [3] - The model evaluates key risk drivers, including social and economic trends, political factors, and historical protest patterns [3] - It aims to provide enhanced insights for exposure management and catastrophe modeling, moving beyond traditional historical data [3] Group 3: Underwriting and Risk Management - Verisk's SRCC Model is designed to empower insurers to improve underwriting strategies and make informed decisions regarding pricing, capital allocation, and risk management [4] - The model combines nearly 40 years of catastrophe modeling expertise with over 15 years of experience in quantifying political violence [4] - It allows insurers to estimate potential insured losses, create robust underwriting guidelines, and assess tail risk through plausible extreme scenarios [6]