Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-8kt4b Total loading time: 0 Render date: 2024-07-05T02:11:24.082Z Has data issue: false hasContentIssue false

19 - Terrorism, Insurance, and Preparedness: Connecting the Dots

Published online by Cambridge University Press:  30 July 2009

James W. MacDonald
Affiliation:
Independent Commercial Insurance and Reinsurance Consultant Philadelphia
Philip E. Auerswald
Affiliation:
George Mason University, Virginia
Lewis M. Branscomb
Affiliation:
Harvard University, Massachusetts
Todd M. La Porte
Affiliation:
George Mason University, Virginia
Erwann O. Michel-Kerjan
Affiliation:
University of Pennsylvania
Get access

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, 1996

The 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 Response
How Private Action Can Reduce Public Vulnerability
, pp. 305 - 337
Publisher: Cambridge University Press
Print publication year: 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×