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Risk of terrorist act high, demand for insurance cover flat
Terrorism risk insurance is available and affordable in the United States, but demand remains flat even as the danger of an act of terror may be at its highest level since Sept. 11, 2001, according to the latest issue of BestWeek U.S./Canada.
BestWeek says that overall capacity of insurance provided by the private market has increased since 2006 and prices of insurance and reinsurance have generally fallen, according to a presidential panel’s report on market conditions for terrorism risk insurance. At the same time, capacity is limited in high-risk geographic locations and properties and policyholder take-up has leveled off; some 40% of businesses are not purchasing the insurance.
