Insurers need to do more to combat increasingly complex terrorism threats, according to a new report by JLT Re and JLT.
The firms said that following a series of devastating bombings and shootings around the world in recent months, including the attacks in Brussels this week, the likelihood of a major terrorist attack is set to remain high.
Chris Holt, head of credit, political and security risk consulting, JLT Specialty, said: “Terrorism has evolved into a more complex threat for businesses and insurers, with both attacks and fatalities seeing steep increases since 2011.
“But this isn’t just about an increase in activity. The rise of Islamic extremism, combined with the potential access to weapons, explosives and toxic materials, comes at a time when modern communications and technologies are being exploited by groups as recruitment tools, communication channels and potential attack vectors. This means today's terrorist threat is more dynamic with impacts that are difficult to accurately predict.”
Paul Upton, partner, marine, energy and political risk, JLT Re, added: “Clearly all of this has implications on the provision of terror re/insurance cover. The market has been slow to respond and the fallout from several recent attacks has reinforced the need for new products.
“We are working with a number of market participants to deliver new and innovative products in this area. This can be done through the development of holistic solutions or, what is more likely in the short term, a suite of products that plug existing gaps.”
JLT Re, JLT, Insurance, Terrorism, Chris Holt, Paul Upton, Europe