Demand for terrorism coverage expands and diversifiesPosted On: Apr. 22, 2007 12:00 AM CST
LONDONThe stand-alone terrorism insurance market is alive and well, according to a report released last week by Aon Crisis Management in London.
Capacity for stand-alone terror coverage--which is generally the market of last resort for risk managers seeking terrorism insurance--has grown over recent years, according to Aon.
Depending on location, "it is quite straightforward in the current market to put together a layered program up to $750 million (and in select cases up to $1.2 billion) at an affordable price," Aon found.
But "certain cities remain terrorism capacity hot spots," the report cautions. "In some parts of New York (midtown and downtown Manhattan) and Brussels it is difficult to obtain cover at acceptable premiums for new risks."
Other difficult areas include Frankfurt, Germany; London's Canary Wharf area; and Hong Kong, among others.
The report noted that demand for coverage has become much more globally diverse, with strong demand coming from such areas as Latin America, Eastern Europe, India and East Asia, as well as from more traditional sources such as North America and Western Europe. "In 2007 stand-alone insurers are much less dependent upon U.S. risks," Aon found.
Aon Crisis Management's "Stand-Alone Terrorism Insurance Market Update: March 2007" can be accessed at www.aon.co.uk.