Actuaries Disclose Potential Terrorism Costs
Tuesday, April 4th, 2006 CatastropheThe American Academy of Actuaries disclosed on Wednesday, March 29 that a future large terrorist attack in New York City could result in $778 billion in insured losses. The group estimated potential insured losses from a conventional truck bomb terrorist attack, as well as medium and large chemical, nuclear, biological or radiological (CNBR) events caused by terrorism. According to the academy, a truck bomb attack in New York City could cost $11.8 billion and a medium CNBR terrorist attack could cost $446.5 billion. Models for three additional U.S. cities also were generated. In Washington, D.C., a truck bomb attack could cost $5.5 billion, a medium CNBR event could cost $106.2 billion and a large CNBR could cost $196.8 billion. In San Francisco the costs for those events were estimated to be $8.8 billion, $92.2 billion, and $171.2 billion, respectively, while in Des Moines, Iowa, the costs could be $3 billion, $27.3 billion, and $42.3 billion.
