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Terrorism insurance reinforcements will soon be expiring

July 15, 2014July 12, 2014 H. Cutner

terrorism insurance industry news 9/11 Memorial in 2004

Two competing renewal bills for the Act will soon be redefining the level of federal support for private insurers. As a result of a rash of damages and vandalism following the attacks on 9/11, terrorism insurance faced a total estimated loss of $32.5 billion, which caused insurers to start to create exclusions for the coverage for commercial properties across the country. Businesses struggled to be able to find coverage to protect themselves against financial losses from acts of terror. The concern from cities and states was that this lack of…

Terrorism insurance act may receive an extension in the US

June 10, 2014June 10, 2014 Marc

Senate panel unanimously approves extension of Terrorism Risk Insurance Act A U.S. Senate panel has approved the extension of the federal terrorism insurance initiative. The Terrorism Risk Insurance Act, which was signed into law in 2002, created a backstop for insurance claims relating to acts of terrorism. This initiative is designed to mitigate the risks associated with terrorism occurring within the United States and provides coverage for businesses and any entity that is deemed eligible. A select few insurance companies are allowed to participate in the initiative by providing products…

The terrorism insurance law’s expiration boosts uncertainty

May 15, 2014May 14, 2014 Julie Campbell

The federal program could end at the close of 2014, causing costs in commercial real estate to spike. The federal terrorism insurance is on the cusp of expiring and many in the industry are now cautioning that if it is allowed to be eliminated or scaled back, this could cause costs in commercial real estate to take off in an unprecedented way. The federal Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) expiration could lead to liquidity risks. Reports are showing that terrorism insurance continues to play an important role, which…

Terrorism insurance program renewal future is unknown

May 9, 2014May 9, 2014 Julie Campbell

The debate will be whether or not there is any need to extend this coverage for a second time. When the attacks on the World Trade Center and on the Pentagon occurred on 9/11, there was a dramatic change in the demand for terrorism insurance and in the way that risk was being calculated by insurers. Suddenly, there was a very real threat that massive losses could occur as a results of terrorist attacks. A law was put into place to make sure that terrorism insurance would remain available and…

Terrorism insurance policies sought by Pakistani corporations

May 2, 2014April 30, 2014 H. Cutner

Some strategic moves have been made within the country in order to help to mitigate the terror risk. The chief regulator in Pakistan has been trying to encourage the Pakistan Reinsurance Company Ltd. to write terrorism insurance policies for businesses within the country, in order to protect them against the damage and the liabilities from that kind of attack. So far, the reinsurer has expressed no discernible interest in providing that type of coverage. That firm has managed to completely sidestep the efforts of the chief regulator that would have…