NU Online News Service, April 29, 2004, 1:55 p.m. EDT – Many easy-to-imagine disasters could end up causing more insured life and health losses than the Sept. 11, 2001, terrorist attacks.[@@]
Researchers at Risk Management Solutions Inc., Newark, Calif., come to that conclusion in a report that assesses the effects of 7 grim scenarios on losses at health, individual life, group life, workers’ comp and accidental death and dismemberment carriers.
The scenarios examined include a magnitude 7.1 earthquake in Los Angeles, a magnitude 6.0 earthquake in Chicago, a terrorist attack using 3 simultaneous truck bombs, a midsize anthrax attack, a big anthrax attack, an industrial rail accident and chemical spill, and a serious nationwide flu pandemic.
Insured loss estimates range from $2 billion for the Chicago earthquake to $54 billion for the big anthrax attack, and forecasts for loss of life range from 2,100 for the Chicago earthquake to 200,000 for the flu pandemic.
For life insurers, a big anthrax attack might cause the most damages, but a serious flu pandemic might cause the most damage for health insurers, the RMS researchers predict.