Bermudian re/insurer Validus’ insurance unit Talbot has launched three enhanced terror facilities in the Singapore, Latin American and Dubai markets, after seeing growing global demand for terror coverage.
The Facilities offer a full range of coverage against war and other political violence perils, Talbot’s Global Practice Leader for Political Violence, Steven Tebbutt, commented; “terror is an ever-increasing issue our clients face today.
“These facilities have been tailored with broader cover and increased capacity to enable us to provide solutions and enhanced limits to our clients.”
The new Facilities will write terror risk of up to $150 million on any one risk in Singapore, and up to $175 million for a single risk in Latin America and Dubai.
Capacity will be provided by Japanese specialist re/insurer, Sompo Canopius, for the Singapore Facility and by re/insurers Sompo Canopius, Navigators and Neon for the Latin American and Dubai Facilities.
In another move to expand terror facilities, in November last year, Talbot set up the only Lloyd’s led consortium for nuclear, biological, chemical and radiological (NBCR) terrorism.
The consortium led facility responds to increased demand for cover of chemical agent terrorist attacks and allows brokers to fully bind through one underwriter, with Talbot as the lead member.
Validus’ strategic increase of their speciality terror facilities is in line with forecasts for 2017’s key terrorist risks; Pool Re recently released a report, highlighting the fastest growing terror threats as the development of chemical warfare expertise and increased low sophistication terror attacks as fighters return to their home countries and Al Qaeda and Daesh build a global online Caliphate.
With the current geopolitical climate of instability as established international institutions are questioned and radicalisation grows an online network, the trend for increased global terror coverage demand, and along with it, reinsurance capacity, appears set to continue to grow in coming years.
