Although terrorism was not considered a major threat to Switzerland due to its neutral political stance, many private Swiss insurers began to include terrorism exclusion for property risks in 2002. In early 2002, the Schweizer Sachversicherungs-Verband (SVV, Swiss association of property insurers) set up a committee to study domestic terrorism insurance issues. This resulted in a terrorism facility being put into place for all private property insurers licensed to operate in Switzerland.
Since September 2003, insurers can cede all property risks for buildings, contents, or business interruption with a sum insured between CHF10 million and CHF100 million for treaty cover and above CHF100 million for facultative cover to the terrorism reinsurance facility.
All primary property insurance policies incepting on or after September 1, 2003, with a sum insured in excess of CHF10 million exclude terrorism risks. On property lines with an insured sum less than CHF10 million, there is no exclusion for terrorism and no additional premiums for buildings, content or bodily injury. In addition, there is no exclusion for terrorism in workers compensation lines (Accident Insurance Act). For commercial and industrial lines, there is a general exclusion for risk with a total sum insured for less than CHF10 million. Terrorism cover can be reinstated (even on a “first-risk basis”) with respect to risks with a sum insured between CHF10 million and CHF100 million subject to the conditions of the scheme.
(The report includes all charts and exhibits)
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