Special Risk Insurance and Reinsurance Luxembourg S.A. (SRIR), established last March by Germany’s Allianz AG, several other European insurers and Bermuda’s XL Capital, offers property and business interruption coverage for terrorist related risks.
It’s helping to fill the need for increased capacity in the sector following the events of September 11. An updated report on the Allianz Web Site (http://www.allianz.com) indicates it’s been a success, as demand for terrorist coverage continues to increase. “Although Asia and Africa are not SRIR’s focus, the phones wouldn’t stop ringing following the bomb explosions in Bali and Kenya. The risk of more terrorist attacks seems higher than ever,” said the bulletin.
With $275 million in capacity, dedicated exclusively to coverage of terrorist risks, the company remains one of the few in the industry that has ventured into these treacherous waters. Its coverage isn’t open-ended. It’s based on calculating an “accumulation zone basis,” which is defined as property within a 600-meter [1950 foot] radius. It’s also been pretty much limited to Europe.
Policies include a clear definition of an act of terrorism and “exclusions for risks related to nuclear and biochemical events. SRIR offers property damage, business interruption, and extra expense coverage.”
It’s management and underwriting team is based in Luxembourg. CEO Alan May’s career includes more than 30 years at CIGNA, where he held a number of senior management positions, including managing insurance operations in Australia, Canada, the UK and the global risk management business unit based in the US.
Topics Trends Catastrophe Natural Disasters
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