David Flandro, Head of Global Business Intelligence and Julian Alovisi, Senior Vice President
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.
Click here to read Terrorism – Reinsurers Standing By, Part IV: Terrorism Analytics and Rating Agency Requirements »
Click here to read Terrorism – Reinsurers Standing By, Part III: Terror Reinsurance Markets »
Click here to read Terrorism – Reinsurers Standing By, Part II: Risks, Threats and Exposures »
Click here to read Terrorism – Reinsurers Standing By, Part I: Introduction »
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