The global terrorism landscape has changed considerably since the September 11, 2001 attacks. During this time, improved intelligence and counter-terrorism operations around the world have weakened the threat posed to the West by the core al-Qaeda group. Military operations in Afghanistan and Pakistan and the killing of several key terrorist operatives, including Osama bin Laden, have marginalized al-Qaeda and its affiliates and prevented other spectacular attacks on the scale of September 11, 2001.
Archive for the ‘Reins Markets’ Category
In our first MENA Insights interview, Dr Cherif Chentir, Chief Underwriting Officer, Middle East, South Eastern Europe, Greece, Cyprus, Malta, SCOR SE, talks about the mega-projects taking place in the region and his belief that insurance penetration can only move in one direction. He looks back over his long career and charts the development of a market that has changed beyond all recognition.
Guy Carpenter reports that market pressures at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double digit range. As loss activity remained minimal, reinsurers added to surplus capacity and additional capital continued to come into the market via alternative sources.
The chart shows that in 2012 there were over 850 insurers participating in the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), writing over USD183 billion in premiums. Using the current 20 percent deductible requirement of TRIPRA and policyholder surplus as a filter, Guy Carpenter found that the smaller to mid-sized insurance carriers would be most affected should there be an increase in the deductible of any program that replaces TRIPRA. Without TRIPRA, insurers with less than USD300 million in surplus would likely need to incorporate additional private reinsurance market capacity to protect their capital and to satisfy rating agencies and regulators.