The War and Terrorism market in 2014 has not seen as large an influx of new entrants and capacity into the London market as in recent years. Instead, it has settled down to engage in intelligent underwriting and healthy competition for this class of business in a vibrant and ardent insurance arena, which in turn continues to produce low loss ratios.
Much of the drive toward selling terrorism insurance is not only the competitiveness of the terms available, but also the need to satisfy lenders and financial officers of corporations. After all, there is the ever-present scenario that in the event that there was a loss, why, if coverage was offered, was it not bought?
Presently, the London terrorism market remains highly capable and willing to offer capacity to almost any country in the world, with 158 countries enjoying the comfort of terrorism cover currently. Varying degrees of capacity allocation and pricing in some cases are of course a necessity, but underwriters continue to show healthy desire for risk in the push for a profitable economic bottom line, and a comprehensive and affordable product for insurance and reinsurance buyers alike.
Read my full piece that also appeared in Insurance Day, with additional thoughts on ISIS, Israel and Gaza, the Ukraine situation, and the upcoming TRIPRA expiration date in the United States.