With the incidents of lone wolf terrorist attacks increasing as well as the latest series of attacks across the world, terrorism has unfortunately become a very real risk almost every where in the world.
Bomb blasts are not just limited to war zones anymore and suicide bomber is a term everyone knows and fears.
Increase your terrorism risk awareness at the 2016 NIBA Convention
Keeping in mind the rising threats of terrorism and its effects on the insurance industry, the 2016 NIBA Convention has a panel session dedicated to terrorism insurance in Australia which will include a presentation from Mike Pennell the Chief Underwriting Officer at ARPC.
The recently released Marsh 2016 Terrorism Risk Insurance Report summarises terrorism risk insurance trends, provides bench-marking related to terrorism insurance take-up rates and pricing, and offers risk management solutions for terrorism exposures.
The report states “As small group and ‘lone wolf’ terrorist attacks appear to be the changing face of terrorism, many organisations are assessing their coverage for indirect losses stemming from business interruption risks.”
Recent attacks driving interest in terrorism risk and insurance
The global broker explained that business disruption costs can outweigh potential cost of property damage if, for example, a city or region was put under curfew, businesses were closed indefinitely, travel was disrupted, or reservations were cancelled. For example, how recent attacks in Egypt, France, Lebanon, and Mali has resulted to about 10 per cent of cancelled booked trips by American travellers and this year’s bombing of Brussels International Airport has caused airlines, hotel chains, and travel websites to experience drops in their stock prices.
The report also states that with this shifting nature of terrorism, companies have begun to inquire whether they are adequately covered for such risks. Among industry sectors, media organisations had the highest take-up rate for terrorism insurance in 2015 and that workers’ compensation markets for terrorism risks generally stabilised.