Washington - The American Academy of Actuaries disclosed that a future large terrorist attack in New York City could result in $778 billion in insured losses.Speaking at the National Association of Insurance Commissioners (NAIC) public hearing on "Terrorism Insurance Matters," Michael McCarter, chairperson of the Academy Terrorism Risk Insurance Subgroup, provided potential property/casualty, and group life insurance losses as a result of various types of terrorist attacks. His 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.

"The largest CNBR event we modeled caused $696 billion in property and casualty losses and $82 billion in group life insurance losses," said McCarter, whose subgroup used catastrophe risk models by AIR Worldwide to generate insurance cost figures. The subgroup was created by the Academy after receiving requests from Congress for actuarial analyses as it considered the reauthorization of the Terrorism Risk Insurance Act of 2002 (TRIA) last year.

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