Marsh and McLennan Companies recently released their 2019 Terrorism Risk Insurance Report.
Terrorism remains a dynamic global risk and a serious threat for people and organizations. The evolution of terrorism risk exposes many countries to complex threats from both international and home-grown groups, as well as individuals acting on their own, known as “lone wolves.”
Ebbs and flows in terrorism are common, but the evolving and ever-present nature of this risk requires people and organizations to be continuously on guard.
The means and perpetrators of terrorist attacks continue to shift, with soft or relatively unprotected targets becoming more of a focal point. In response, insurers are continuing to develop and offer new and innovative solutions for risk professionals, who have been challenged to adopt new strategies to protect properties, employees, and balance sheets in response to constantly evolving threats. The market for property terrorism insurance remains competitive for most buyers, due in recent years to a steady decline in the number of global terrorist incidents and minimal insurance claims.
In the US, attention will soon turn to Congress as the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) approaches expiration at the end of 2020. TRIPRA, as with similar public-private mechanisms in other countries, has played an important role in ensuring the continued stability and health of the property terrorism insurance market, and Marsh will continue to monitor developments regarding its renewal.
Our Terrorism Risk Insurance Report explores the state of terrorism and the terrorism insurance marketplace in key regions. In this year’s report, you will find insurance market insights and data and rankings from Marsh’s World Risk Review ratings system. We hope you find this report to be useful as you take steps to manage your terrorism risk.