Since the 2001 World Trade Centre attacks, the global terrorism insurance industry has grown exponentially. According to one expert, the Singaporean terrorism insurance market has already breached the US$100 million mark in terms of premiums.
During the terror attacks, popularly known as 9/11, two hijacked planes crashed into the World Trade Center twin towers in New York, causing around 3,000 fatalities and billions of dollars in insurance claims.
“The terrorism insurance market is something that really emerged after 9/11,” Taylor told Today. “It came about because terrorism had previously been included under the standard property policy … But after 9/11, markets around the world, without exception because of the magnitude of that event, chose to impose a terrorism exclusion.”
Terror cover policy sales have shot up more than a thousand-fold since 9/11, said Taylor, and this has led to premiums becoming much more affordable, reaching levels below 10% of the prices back in 2001.
