The global property terrorism insurance market remains strong with sufficient capacity to respond to today's predominant terrorist threats, according to a new report from Marsh.
Continued stability of the U.S. property terrorism insurance market, however, is a point of focus as the Terrorism Risk Insurance Program Reauthorization Act (“TRIPRA”) is set to expire in 2020, Marsh pointed out.
Marsh's new 2019 Terrorism Risk Insurance Report explores the state of terrorism and the terrorism insurance marketplace in key regions around the world. The report also includes insurance market insights from Marsh's World Risk Review ratings platform, which provides risk ratings across nine different perils for 197 countries.
According to the report, the predominant terrorism threat globally remains from extremists focused on inflicting mass casualties in unsophisticated attacks on crowded public spaces rather than large-scale property damage. Over the last few years, the global property terrorism insurance market has responded by expanding coverage – most notably in the development of coverage for active assailant events and non-damage business interruption.
Although the overall terrorism market is stable and able to respond to today's threats, the long-term viability of the U.S. property terrorism insurance market is back in the spotlight. Marsh noted in the report that should Congress allow TRIPRA to expire without a replacement, it could create capacity shortfalls, especially for businesses located in high profile cities and employers with significant workers' compensation accumulations.
Learn more: 2019 Terrorism Risk Insurance Report.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].