Book contents
- Frontmatter
- Contents
- List of Contributors
- Foreword, by General Robert T. Marsh
- Preface
- Acknowledgments
- I SEEDS OF DISASTER
- II A CRITICAL CHALLENGE
- III MANAGING ORGANIZATIONS
- IV SECURING NETWORKS
- V CREATING MARKETS
- 17 Insurance, the 14th Critical Sector
- 18 National Security and Private-Sector Risk Management for Terrorism
- 19 Terrorism, Insurance, and Preparedness: Connecting the Dots
- 20 Looking Beyond TRIA: A Clinical Examination of Potential Terrorism Loss Sharing
- 21 Financing Catastrophe Risk with Public and Private (Re)insurance Resources
- VI BUILDING TRUST
- VII ROOTS OF RESPONSE
- References
- Contributors
- Author Index
- Subject Index
19 - Terrorism, Insurance, and Preparedness: Connecting the Dots
Published online by Cambridge University Press: 30 July 2009
- Frontmatter
- Contents
- List of Contributors
- Foreword, by General Robert T. Marsh
- Preface
- Acknowledgments
- I SEEDS OF DISASTER
- II A CRITICAL CHALLENGE
- III MANAGING ORGANIZATIONS
- IV SECURING NETWORKS
- V CREATING MARKETS
- 17 Insurance, the 14th Critical Sector
- 18 National Security and Private-Sector Risk Management for Terrorism
- 19 Terrorism, Insurance, and Preparedness: Connecting the Dots
- 20 Looking Beyond TRIA: A Clinical Examination of Potential Terrorism Loss Sharing
- 21 Financing Catastrophe Risk with Public and Private (Re)insurance Resources
- VI BUILDING TRUST
- VII ROOTS OF RESPONSE
- References
- Contributors
- Author Index
- Subject Index
Summary
“We cannot enter data about the future into the computer because such data are inaccessible to us. So we pour in data from the past to fuel the decisionmaking mechanisms created by our models, be they linear or non-linear. But therein lies the logician's trap: past data from real life constitute a sequence of events rather than a set of independent observations, which is what the laws of probability demand…. Even though many variables fall into distributions that approximate a bell curve, the picture is never perfect … resemblance to truth is not the same as truth. It is in those outliers and observations that the wildness lies.”
– Peter Bernstein, Against the Gods, 1996The shocking terrorist assault on September 11, 2001, was one of those “outliers” where, as Peter Bernstein might say, “the wildness lies.” In the immediate aftermath, the coordinated attacks on the Pentagon, on the World Trade Center, and in the air over Pennsylvania appeared to defy all logical explanation and rational analysis. The previous comparable attack by foreigners on continental United States soil occurred almost two centuries ago, when British soldiers burned District of Columbia government buildings during the War of 1812. Prior to the 1990s, the most serious act of domestic terrorism had arguably occurred more than a century earlier with John Brown's 1859 attack on a federal arsenal at Harper's Ferry.
Throughout the 1990s, America witnessed a growing frequency of large and small domestic and foreign terrorist incidents.
- Type
- Chapter
- Information
- Seeds of Disaster, Roots of ResponseHow Private Action Can Reduce Public Vulnerability, pp. 305 - 337Publisher: Cambridge University PressPrint publication year: 2006
- 2
- Cited by