This series has shown that terrorism remains a constant and real risk. Although more
effective counter-terrorism measures have frustrated al-Qaeda’s ability to plan largescale attacks since the events of September 11, 2001, global recorded terror incidents are at historic highs. The emergence of individuals or autonomous groups aligned to the aims of al-Qaeda continues to threaten the developed world, especially as insurgents are able to operate in unstable countries such as Pakistan and Yemen.
However, the (re)insurance industry has responded to the threat. Insurers and reinsurers are increasingly using expert advice to monitor the political climate and the industry plays a central role ensuring economies will be sustained in the event of a major terrorist attack. As shown by the Guy Carpenter survey, reinsurers are keen to place more terrorism business. However, it seems supply/demand imbalances currently exist, resulting in lower prices and reduced terror market activity.
Yet, insurers are very aware that the outlook could suddenly change if a major terrorist attack were to take place or if TRIA (TRIPRA) were to no longer provide the federal backstop it currently does. The terror reinsurance market is well placed to respond as conditions change and Guy Carpenter remains committed to assist clients in managing their terrorism risks.
Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.