2016 Terrorism Risk Insurance Report
Managing terrorism risk today requires a combination of strategies and tactics that protect people, property, and finances. On the financial side, the choice is whether to retain or transfer the risk via insurance. But the changing pattern of terrorism risk has some companies questioning whether they are adequately insured for business interruption and related losses. And they wonder how to prepare for potential losses from cyber terrorism and other events.
The 2016 Terrorism Risk Insurance Report summarizes terrorism risk insurance trends, provides benchmarking related to terrorism insurance take-up rates and pricing, and offers risk management solutions for terrorism exposures.
Among the key takeaways from the report:
- As small group and “lone wolf” terrorist attacks appear to be the changing face of terrorism, many organizations are assessing their coverage for indirect losses stemming from business interruption risks.
- Following the 2015 passage of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), take-up rates in the US edged up for TRIPRA terrorism coverage embedded in property programs.
- Among industry sectors, media organizations had the highest take-up rate for terrorism insurance in 2015.
- Workers’ compensation markets for terrorism risks generally stabilized.