Germany’s Allianz, along with Swiss Re and Zurich Financial Services, plans to establish a terrorist insurance unit to cover risks in Europe that since Sept. 11 have either been unavailable or prohibitively expensive.
According to a report in the Financial Times, Allianz board member Detlev Bremkamp confirmed the project, and said it would be established in Luxembourg, and that Allianz was seeking additional participants. Munich Re apparently has indicated that it isn’t interested.
The German insurance association has announced plans to set up a private company, which would cover terrorist related risks up to $2.65 billion with the government backing up claims for losses greater than that amount. Some members charged that Allianz would be undermining that initiative, but Bremkamp told the FT that Allianz viewed its new unit as being “supplemental” rather than in competition with other initiatives.
He indicated that the venture would cover all of Europe, not just Germany, and would have “limited capacities.” It would cover an area of 600 meters, about 2000 feet, and, at least initially would cover only buildings and their contents, not business interruption.
While plans call for the coverage to be exclusively European, ruling out the possibility that Allianz U.S. subsidiaries, such as Fireman’s Fund, could offer it in the U.S., Bremkamp did indicated that companies outside Europe could be covered in “exceptional cases.”|”allianz, plans, european, terrorist, coverage, unit
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