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2015 Terrorism Risk Insurance Report


Terrorism insurance take-up rates dropped off toward the end of 2014, due to the anxiety stemming from the unexpected expiration of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). Congress quickly authorized a slightly amended version of the law in January 2015 and buyers of terrorism insurance since have generally experienced a favorable rate environment, a trend that is expected to continue, barring unforeseen events or market changes.

Our 2015 Terrorism Risk Insurance Report analyzes terrorism risk insurance pricing and take-up rates, breaking down the data by company size, industry, and region.

Among the key findings from the report:

  • Terrorism insurance take-up rates have remained relatively stable since 2009, although they decreased slightly in 2014 as a result of the anxiety surrounding TRIPRA at the end of 2014.
  • Underwriters continue to scrutinize employee concentration exposures, highlighting the importance of accurate data and risk differentiation, particularly for workers’ compensation exposures.
  • Organizations that purchased terrorism coverage in the first half of 2015 typically saw competitive rates offered by standalone property terrorism insurers.
  • Among industry sectors, education organizations had the highest take-up rate for terrorism insurance in 2014.

The report also covers:

  • Insurance market capacity among the major carriers.
  • The role of political violence coverage in mitigating exposures not covered by terrorism policies.
  • Benefits of using captives to secure terrorism coverage under TRIPRA.
  • Potential applicability of terrorism coverage under standard fire policy statutes
  • Applicability of insurance coverage for cyber-attacks.
  • Terrorism reinsurance markets.