UPFRONT
HEAD TO HEAD
What’s next for war and terrorism insurance? Will recent attacks cause an uptick in the market for war and terrorism insurance coverage?
Janice Ochenkowski
Chair RIMS External Affairs Committee
Rosemary Robbins
VP, property Liberty International Underwriters
Nick Greggains
“War and terrorism insurance remain high on the interest list of RIMS’ risk management professionals. As war and terrorist events escalate globally and new types of risk evolve, RIMS’ members are reviewing insurance policies and searching the insurance market for new options and increased limits of coverage. In the United States, reauthorization of TRIA provided a backstop that ensures coverage availability, although RIMS continues to recommend clarification regarding issues such as declaration of an event, in order to enhance the existing program. Broader coverage and higher limits for war-related risks such as NBCR are also needed globally and remain a key focus of risk professionals.”
“There is a growing public perception of terrorist activity on a global scale, with larger, well-organized groups posing an increasing threat of catastrophic damage, as witnessed recently in Paris and Brussels. Consequently, the commercial world is increasingly – and understandably – seeking insurance protection against the potential damage and cost that can result from terrorist activities. While terrorism continues to be excluded under all risks policies – a consequence of 9/11 – affordable cover is readily available with few restrictions. We should see continuing market growth as businesses – both domestic and those with foreign exposures – seek protection against the devastating impact of attacks.”
“Recent terrorist attacks show a change from large-scale, carefully orchestrated events to higher frequency, lower-severity attacks carried out by small groups or individuals. This doesn’t mean the need for comprehensive property and business interruption coverage has diminished – risk managers are still seeking large limits to protect company infrastructure and assets. Organizations are also looking for additional localized coverage to manage the broader spectrum of political violence risks to address their risks in emerging markets, as well as the more traditional terrorism risk in metropolitan areas. Understanding exposure to the full spectrum of risks has become essential to addressing the evolving threats.”
CEO XL Catlin Canada
COVERAGE FOR A CHANGING WORLD Recent attacks in France and Belgium and the downing of EgyptAir flight MS804 have generated greater demand for coverage. Recent statistics from the Institute for Economics and Peace show an 80% increase in the total number of deaths from terrorism over the last year for which figures exist – the largest yearly escalation seen over the previous 15 years. It is consistent with the overall trend seen since 2010, in which the number of deaths from terrorism has risen by almost a factor of 10.
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21/06/2016 4:05:09 AM