Global Terrorism Insurance Market Keeps Pace With Evolving Threats
New York, NY | May 22, 2019
TRIPRA Remains Crucial to Continued Stability of US Market: Marsh Report
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, the world’s leading insurance broker and risk adviser. Continued stability of the US 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.
Published today, Marsh’s 2019 Terrorism Risk Insurance Report explores the state of terrorism and the terrorism insurance marketplace in key regions around the world. This year’s 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.
While the overall terrorism market is stable and able to respond to today’s threats, the long-term viability of the US property terrorism insurance market is back in the spotlight. Marsh notes 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.
Marsh is the world’s leading insurance broker and risk adviser. With over 35,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data driven risk solutions and advisory services. Marsh is a business of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue approaching US$17 billion and 76,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.