This brochure describes the work undertaken at Geoscience Australia (GA) to develop a blast loss estimation capability for the Australian Reinsurance Pool Corporation. This brochure was developed to accompany a GA record on the same subject. (eCat #101902)
Geoscience Australia has developed a modelling capability to estimate the potential impact of terrorist blasts in Australian central business districts (CBDs). With this information, the Australian Government is now able to more reliably estimate insured loss on behalf of the Australian Reinsurance Pool Corporation (APRC).
Insured loss is determined based on impact to buildings, contents and business interruption. This capability can now provide blast loss estimates to ARPC in a single business day for the Sydney, Melbourne, Adelaide and Brisbane CBDs. This capability is still in development for the Perth CBD and is expected to be operational by the end of 2016.
This blast modelling capability allows ARPC to understand their financial exposure to a range of blast scenarios and assists them to ensure appropriate levels of reinsurance are held to respond to a terrorist incident. Should a terrorist incident occur, loss estimates can be continually reassessed as intelligence from the field is incorporated. Furthermore, the capability provides the ability to assess expected losses across CBDs through simulating many blast locations.
