Lack of capacity and demand in terror market
Saturday, 09 16 2017, Category: Insurance and Reinsurance, Country: World
The changing terror risk landscape, underlined by an increased focus on “mass casualty and fear-inducing” events, suggests a need for greater capacity and a different approach to the peril, according to Guy Carpenter Managing Director, Charles Gibbs, and Vice President, Jamie Russell.
“There has been a major shift in the focus of terror attacks towards mass casualty and fear-inducing events, and away from physical damage. Yet, terrorism pools are built primarily to address catastrophic damage, while the private market is also geared towards managing this increasingly frequent but minor component of the loss,” said Gibbs.
In recent times the terror risk landscape has changed dramatically, with events occurring across Europe, ranging from vehicles being used as weapons to bombings and knife attacks.