Singapore’s terrorism insurance market has exceeded US$100 million

Increased terrorist activity in the region has caused the country’s terror score to be upgraded by one level

Singapore’s terrorism insurance market has exceeded US$100 million

Insurance News

By Gabriel Olano

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.
As a result, demand for standalone terror cover products has kept on growing, according to Julian Taylor, head of crisis management (Asia) for Aon Risk Solutions.

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“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.
According to the 2017 Risk Maps report by Aon, Singapore’s risk level is currently at “low”, up from “negligible” in the previous edition. This is due to increased terrorist activity in the ASEAN region, as well as the arrest of several radicalized individuals in Singapore.

“Singapore is low-risk, low-crime and everything is very positive here, but we are sandwiched between two nations with known radicalised Islamists returning from Syria looking to target Western economic targets. That’s one thing Singapore has an awful lot of,” Taylor said.

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