On November 13th, 2015, several coordinated terrorist attacks occurred in Paris, France. The most deadly of these attacks occurred at the Bataclan theatre, where there were 89 casualties and the perpetrators took hostages before engaging in a police standoff. Among the other attacks, three explosions occurred outside of the Stade de France during an international friendly soccer match that was attended by the president of France, who was quickly evacuated from the premises. The attackers had intended to detonate the explosive devices inside the stadium but their entrance was barred by security.
A day prior to the Paris attacks, a pair of suicide bombers detonated explosive devices in a suburb of Beirut, Lebanon, killing approximately 40 people.
These international incidents have been followed by several domestic shootings of civilians, most recently in San Bernardino, CA, killing 14. This comes after a November 27th shooting in Colorado Springs, CO, which took the lives of a police officer and two civilians.
The Terrorism Risk Insurance Act (TRIA) was introduced in late 2002 as a means to help protect the private insurance industry from events such as 9/11, which caused an estimated $40 billion in insured losses. As we all know, TRIA only covers terrorist events that occur on domestic soil, subject to specific thresholds requiring certification of the act. In its 13 year existence, there have been no certified acts of terrorism that TRIA has responded to.
During this 13 year period, the stand-alone terrorism market has become more robust with each passing year. While London remains the leader in this space, the domestic presence of the likes of XL, Ironshore, AIG, Hiscox and others has created competition to the stand-alone terrorism marketplace. Not only does the stand-alone market purport to respond irrespective of whether a terrorist event is certified by the US government, it can also extend to locations and countries outside of the United States, as needed.
As the entire property market has softened in recent years, the stand-alone terrorism marketplace has introduced new products that would be of interest to many Hylant clients.
Please contact your Hylant representative, or a member of our Property and Marine team, for more information.