Posts Tagged ‘terror’



November 28th, 2018

Terrorism: Reinsurance Role in Mitigating the Expanding Peril

Posted at 10:30 AM ET

terrorism_121x120More than ever before, reinsurance brokers and underwriters must use their expertise and solutions to keep insurers and citizens adequately protected. With the peril mutating rapidly, the entire insurance value chain is being challenged – by new types of threats, new modes of attack and the terrorists’ deployment of any violent and disruptive means to reach their desired end-state. The (re)insurance industry must remain in tune with these developments; it must gain insights from academia and observers on how the peril is changing, keep alert to new products in the market, unlock new sources of capacity and help clients understand their portfolios more readily so they remain relevant to their consumer base.

Continue reading…

November 26th, 2018

Terrorism: The Need for Expanded Capacity

Posted at 11:00 AM ET

terrorism_121x120Terrorists are increasingly able to modify, adapt and reinvent their tactics and quickly spread their methodologies to their worldwide support base. Economically, the effect of this change across the globe has been significant. Tourism, trade and investments are examples of areas affected as countries grapple with terrorist actions, both direct and indirect. According to the Institute for Economics and Peace, although the peak of global economic impact from terror events was reached in 2014, it remains at historically high levels.

Continue reading…

November 6th, 2018

Evolving Terror Threats - Innovation Needed to Meet Changing Demands

Posted at 1:00 AM ET

New modes of attack are causing a shift from large terrorist events aimed at property destruction to less sophisticated attacks causing mass casualties and fear. With global commerce, tourism and financial markets impacted, demand is growing for modeling, capacity and protection-gap solutions to increase resiliency against such attacks.

Continue reading…

October 25th, 2018

Escalating Threat of Cyber Terrorism

Posted at 2:00 AM ET

The WannaCry and NotPetya cyber-attacks illustrated the magnitude of the damage that cyber-attacks can cause. These two attacks affected organizations in more than 150 countries, prompted business interruption and other losses estimated at well over USD 300 million by some companies, brought reputational damage and resulted in loss of customer data.

Continue reading…

July 10th, 2018

Trends in Terror Cover

Posted at 1:00 AM ET

Hospitality and gaming companies, on average, allocated the largest share of their property insurance programs to terrorism coverage in 2017.

Data in Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, showed that hospitality and gaming companies allocated 10 percent of property premium to terrorism coverage. Continue reading…

May 29th, 2018

Terrorism Risk Modeling Poses Challenges

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2Terrorism risk modeling methods have been continually updated since leading modeling companies AIR Worldwide and Risk Management Solutions released their first terrorism models in 2002. Quantifying the economic, insured and human losses from terrorist attacks poses major challenges for insurers, reinsurers and alternative capacity providers.

Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, explores the state of the terrorism insurance marketplace, presenting data on purchasing and pricing trends.

Continue reading…

May 10th, 2018

United States Reinsurance Capacity for Terrorism

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2In 2017, according to Guy Carpenter, the combined property and workers compensation private conventional-only terrorism reinsurance capacity was estimated to be USD 2.5 billion per cedent program. Reinsurance capacity for coverage that includes Nuclear, Biological, Chemical and Radiological, especially in Tier 1 cities and central business districts, has become increasingly challenging to secure over the past two years due to the accumulated aggregate constraints of some markets and is estimated to range between USD 500 million and USD 1 billion per program.

Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, explores the state of the terrorism insurance marketplace, presenting data on purchasing and pricing trends.

Continue reading…

April 18th, 2018

Reliance on the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA)

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2In 2017, more than 800 insurers wrote USD 215 billion in TRIPRA eligible premium, with a combined policyholder surplus of USD 683 billion. Considering the current 20 percent deductible requirement and policyholder surplus as a filter, Guy Carpenter’s analysis concludes that small to midsize insurers are substantially more vulnerable to the annual increases in the TRIPRA industry trigger and their overall net retentions as a percentage of policyholder surplus.

Continue reading…

April 10th, 2018

2018 Terrorism Risk Insurance Report

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2Although the number of incidents and casualties declined in 2017, terrorism remains a persistent and significant threat to businesses, governments and individuals.

Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, explores the state of the terrorism insurance marketplace, presenting data on purchasing and pricing trends. We also take a look at how the terrorism insurance market continues to innovate and respond to the needs of global organizations in light of an evolving risk landscape.

Reinsurance capacity for terrorism risks continues to develop and grow. Many insurers continue to use the commercial reinsurance markets — at least in part — to buy down their TRIPRA deductibles and buy out their co-shares at acceptable prices, especially for
conventional weapon attacks.

Continue reading…