The nation recently took time out to remember the 13th anniversary of the 9/11 attacks that occured in 2001 in New York City, Washington and Pennsylvania.
And, while this is never part of the recognition of that day, it's worth noting for our purposes in the P&C industry that those attacks were the most expensive terrorist attacks of all time in terms of insured losses, producing losses of about $32.5 billion ($42.9 billion in 2013 dollars). This was the largest insurance loss in global history at the time and losses were paid out across a variety of lines, including property, business interrupton, aviation, workers compensation, life and liability.
As Congress continues to delay renewal of the federal Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), it's a good time to consider the continuing risk of terrorist-related losses, due to new threats from extremist groups like ISIS and others.
“The 13-year anniversary of the September 11, 2001, terrorist attack—coming just ahead of TRIPRA's looming December 31 expiration date—is a reminder of the urgent need for Congress to swiftly reauthorize this vital Act, which has proven itself to be a critical component of the country's national economic security infrastructure,” said Dr. Robert Hartwig, CPCU, economist and president of the Insurance Information Institute (I.I.I.) in a statement last week. “Moreover, recent and explicit threats to American interests around the world from new terrorist organizations, including Islamic State (ISIS), demonstrate that the need for the program is greater than at any time in the past several years.”
But 9/11 isn't the only example. Here are the top 10 most expensive terrorist acts of all time, ranked in terms of insured losses (all losses in 2013 dollars). Source: I.I.I.
Sept. 12, 1970
Zerqa, Jordan
Hijacked Swissair DC-8, TWA Boeing 707, BOAC VC-10 dynamited on the ground.
Insured property loss: $167M
Fatalities: 0
April 19, 1995
Oklahoma City, OK
Bombing of the federal building in downtown Oklahoma City.
Insured property losses: $192M
Fatalities: 166
June 23, 1985
Over the North Atlantic
Bomb explodes on board an Air India Boeing 747.
Insured property losses: $212M
Fatalities: 329
Feb. 9, 1996
London, UK
IRA bomb explodes in the city's South Quay Docklands area.
Insured property losses: $341M
Fatalities: 2
July 24, 2001
Colombo, Sri Lanka
Rebels destroy 3 airliners, 8 military aircraft and heavily damage 3 civilian aircraft.
Insured property losses: $525M
Fatalities: 20
Feb. 26, 1993
New York, NY
Bomb explodes in the garage of the World Trade Center.
Insured property losses: $822M
Fatalities: 6
April 10, 1992
London, UK
Bomb explodes in London's financial district.
Insured property losses: $883M
Fatalities: 3
June 15, 1996
Manchester, UK
Irish Republican Army (IRA) car bomb explodes near a shopping mall.
Insured property losses: $980M
Fatalities: 0
April 24, 1993
London, UK
Bomb explodes near NatWest tower in the financial district.
Insured property losses: $1.2B
Fatalities: 1
Sept. 11, 2001
New York, NY; Washington, DC; Pennsylvania
Hijacked airliners crash into the World Trade Center, Pentagon and a rural area in Pennsylvania.
Insured property losses: $24.7B
Fatalities: 2,982
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