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There was a time when scenarios involving terrorists imploding the World Trade Center, global pandemics, the flooding of major urban centers or even the melting of polar ice caps were relegated to the stuff of epic disaster films and our worst nightmares. Unfortunately, that is no longer the case. Today, the threat as well as the reality of such natural and man-made catastrophes seems to be increasing in number, complexity and cost–forcing companies and the insurance industry to develop real mitigation and risk transfer strategies for what was once the unthinkable. Little wonder why catastrophic risks have become the first, rather than the last, topic that CFOs, treasurers and risk managers want to discuss with their insurance brokers.

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