Brokers need to be aware of terrorism cover

An exec at a major insurer has said that brokers need to be aware of coverage relating to terrorism as the UK deals with another attack

Brokers need to be aware of terrorism cover

Insurance News

By Jordan Lynn

Brokers need to be cognisant of coverage that could help clients in the event of a terrorist attack.

Over the weekend, London fell victim to another terrorism incident as three attackers used a van to attack pedestrians on London Bridge before leaving the vehicle and stabbing several others.

Thus far, seven people have been killed with scores more injured and the three attackers also killed.

Speaking after the attack on Manchester last month, Nick Wood, head of property and special risks - Greater China & Australasia at AIG, said that whilst Manchester-style attacks are unlikely to have much impact on the terrorism market, brokers still need to be aware of coverage.

“It’s important for brokers to be aware of the products available in each market and consider the changing terrorism landscape that we see around the globe,” Wood told Insurance Business.

“Large scale, co-ordinated terrorist attacks seem to have diminished, while we now see a trend towards a ‘lone wolf’ style of threat.

“The important thing to consider in lone wolf attacks is that any business could be susceptible, particularly where large gatherings of people occur.”

With threat levels raised around the world in response to the attacks in the United Kingdom, it is important for brokers to remain up-to-date on terrorism style products which could aid clients.

Many developed nations, including the UK and Australia, have a terrorism reinsurance pool which will respond to acts of terror, but brokers should be aware of standalone options which could also boost protection for clients.

“Where Pool coverage is not available, standalone terrorism coverage can be provided by the insurance market,” Wood continued.

“Availability, coverage and price will deviate dependent on the individual risk characteristics and the perceived terrorism threat in each geography.”

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