Terrorism insurance unappealing to the Middle East

by Richard Kilner

Story link: Terrorism insurance unappealing to the Middle East

The number of firms in the Middle East and North Africa taking out insurance against terrorism remains very low, according to Willis.

This is in spite of a recent series of terrorist incidents in the region.

Bahrain will see the group host a presentation at the General Arab Insurance Federation, which will focus upon the seemingly contradictory high level of terrorism in the region and the low level of insurance taken out against it.

David James, a senior underwriter of theTerrorism & Political Risks Insurance practice of Ascot will address the gathering.

James’ talk will include the statistics that whilst the Middle East and North Africa account for 23% of terrorist attacks, they take out only 4% of Ascot’s terrorist insurance.

This contrasts directly with North America, which sees a mere 1.2% of terrorist attacks but which takes out 26% of insurance.

Willis Global Markets Terrorism Practice Leader, Alex Clayton, explained that the catalyst for a revolution in terrorism insurance was, unsurprisingly 9/11. In 2001 there was $50m of terrorism insurance, compared to $1.4bn now.

Over the last seven years coverage has become broader and the sector has become more sophisticated, with policies becoming more tailored to the needs of individuals.