Terrorism underwriting post 7/7

Terrorism underwriting post 7/7

The events of 7 July refocused public awareness of the terrorism threat in the UK to the extent that it has dominated newspaper copy and TV headlines for the last month. These events occurred at a time when terrorism was at the forefront of insurance practitioners’ minds following the continuing speculation in the USA over the renewal of the Terrorism Risk Insurance Act. Before 11 September, terrorism insurance was associated with countries characterised by political and civil instability, such as South America and the Middle East. Before that date, the US accounted for as little as one per cent of the typical terrorism under-writer's book of business. In the years since then, the stand-alone terrorism market has matured considerably with most underwriters offering coverage on a truly global basis. London, and Lloyd's in particular, is very much the focal point of the international terrorism market. insurance. However, Julian Barker , underwriter at the Lloyd's based, Ascot Underwriting Ltd (one of the main providers of terrorism insurance cover in the market) says that the events of 7 July have served to reiterate that every terrorist incident is different and that it is vital that the response from the insurance market is a measured one.