https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AAIR_WorldwideDefinition:AIR Worldwide - Revision history2026-05-03T10:27:47ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:AIR_Worldwide&diff=7192&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T12:39:05Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🌪️ '''AIR Worldwide''' is one of the three major [[Definition:Catastrophe model | catastrophe modeling]] firms that the global insurance and [[Definition:Reinsurance | reinsurance]] industry relies on to quantify exposure to natural and man-made disasters. Now a Verisk business, AIR pioneered the commercial use of probabilistic [[Definition:Catastrophe model | catastrophe models]] in the late 1980s, fundamentally changing how [[Definition:Insurance carrier | insurers]] and [[Definition:Reinsurance | reinsurers]] price, underwrite, and manage [[Definition:Catastrophe risk | catastrophe risk]] — from hurricanes and earthquakes to terrorism, cyber events, and pandemics.<br />
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🖥️ AIR's platform, Touchstone, ingests an insurer's [[Definition:Exposure | exposure]] data — property locations, construction types, policy terms, and coverage limits — and runs it against scientifically modeled event sets that simulate tens of thousands of plausible catastrophe scenarios. Each scenario generates estimated losses at the individual risk, portfolio, and enterprise levels, producing key metrics like [[Definition:Probable maximum loss (PML) | probable maximum loss (PML)]], [[Definition:Average annual loss (AAL) | average annual loss (AAL)]], and [[Definition:Exceedance probability curve | exceedance probability (EP) curves]]. These outputs feed directly into [[Definition:Pricing model | pricing]], [[Definition:Reinsurance treaty | reinsurance purchasing]] strategies, [[Definition:Capital management | capital adequacy]] assessments, and regulatory filings. AIR also offers models for emerging perils such as [[Definition:Cyber risk | cyber risk]] and [[Definition:Climate risk | climate change]] impacts, extending its relevance as the risk landscape evolves.<br />
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📊 Catastrophe models from AIR and its peers — [[Definition:RMS | RMS]] and [[Definition:CoreLogic | CoreLogic]] — underpin hundreds of billions of dollars in [[Definition:Risk transfer | risk transfer]] decisions every year. Without them, property [[Definition:Insurance carrier | carriers]] would have no rigorous basis for setting [[Definition:Premium | premiums]] in catastrophe-prone regions, [[Definition:Reinsurance | reinsurers]] could not price layers accurately, and [[Definition:Insurance-linked security (ILS) | ILS]] investors would lack the analytical transparency they require. For any professional working in property catastrophe [[Definition:Underwriting | underwriting]], [[Definition:Enterprise risk management (ERM) | enterprise risk management]], or alternative capital, fluency with AIR's models and output metrics is effectively non-negotiable.<br />
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'''Related concepts'''<br />
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* [[Definition:Catastrophe model]]<br />
* [[Definition:Probable maximum loss (PML)]]<br />
* [[Definition:Average annual loss (AAL)]]<br />
* [[Definition:RMS]]<br />
* [[Definition:Insurance-linked security (ILS)]]<br />
* [[Definition:Exposure management]]<br />
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