Insurance is absorbing only a fraction of the economic impacts of terrorist attacks
24 March 2016
- JLT RE AND JLT SPECIALTY RELEASE JOINT VIEWPOINT REPORT – RISING TO THE NEW TERROR CHALLENGE
- TRADITONAL TERRORISM POLICIES ARE NOT MEETING THE CHALLENGES POSED BY TODAY'S EVOLVING THREAT
JLT Re and JLT Specialty Limited (JLT) have today launched a new Viewpoint Report - Rising to the new terror challenge, a detailed look at the evolving terrorist threat and the implications on terror (re)insurance cover.
Commenting on the report, Chris Holt, Head of Credit, Political & 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 20111".
"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".
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, according to the report.
Paul Upton, Partner, Marine, Energy & Political Risk, JLT Re, said, "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 gaps2".
JLT Re Viewpoint - Rising to the new terror challenge
1. Global Terrorist Attacks and Fatalities 2000 – 2014 (Global Terrorism Database)
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Notes to Editors:
JLT Re Viewpoint is JLT Re’s regular series of reports that comment on or give insight into key topics, occurrences or changes in the (re)insurance and broking market place. On this report JLT Re has collaborated with JLT Specialty Limited to leverage the experience and specialty expertise of both organisations in this area.
About JLT Re
JLT Re’s trusted team of 700 colleagues worldwide combines market leading expertise and proprietary analytical tools with the freedom to challenge conventions.
Deep specialist knowledge and extensive experience of both the reinsurance market and clients’ own industries and sectors enables JLT Re to ask smarter questions, innovate and deliver better results tailored to meet client needs.
JLT Re is part of the Jardine Lloyd Thompson Group plc.
About JLT Specialty Limited
JLT Specialty Limited is a specialist insurance broker and risk consultant, providing market leading industry knowledge and expertise in specialist fields to some of the world's largest companies.
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 40 territories with more than 10,600 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
For further information about JLT, please visit our website www.jlt.com.
Head of Communications & Marketing, JLT Re