Casualty Actuarial Society (CAS) Practice Exam

The focus on risks associated with active shooters reflects recent developments and heightened awareness in insurance coverages. Increased incidents of gun-related violence in public spaces have led to a necessary evolution in insurance policies, specifically regarding liability and coverage for businesses and venues where such events may occur. Insurers are examining how to underwrite policies that specifically address the potential liabilities and damages associated with these incidents, creating a demand for specialized coverages.

While flooding risks, risks from climate change, and natural disaster risks are ongoing concerns for insurers, they represent more traditional categories of risk that have been addressed in the insurance industry for many years. In contrast, the rise of active shooter incidents is a relatively newer concern driving innovation in insurance products and coverage types, prompting a more immediate response from the insurance sector to adapt to these societal changes. This makes the risk from active shooters particularly linked to recent developments in insurance coverages, as it requires the industry to create new forms of risk management and liability coverage tailored to this specific threat.