NEWS

Companies Purchase Terrorism Insurance at Increasing Rates

By Matthew Harwood

 

"The Northeast still has the largest percent of companies purchasing property terrorism insurance, with nearly three out of every four companies buying coverage," notes the report, followed by the Mid-West, the South, and the West, which is the only region of take-up rates below 50 percent. The Northeast also experienced the increase in take-up rates from 2008 unto 2009, followed by the South, the Midwest, and the West.

Terrorism insurance rates have gotten much more affordable from 2008 to 2009, according to the report. In 2008, the median premium price for every million dollars insured was $37. That fell dramatically in 2009 to $25 per million dollars insured. Nevertheless, companies in the construction, hospitality, utility, and real estate sectors paid a median price of at least $50 per every million dollars insured in 2009

After the attacks of 9/11, Congress passed the Terrorism Risk Insurance Act (.pdf), which directed the federal government to establish an insurance safety net for the  private insurance market until it could recover from the terrorist attacks and create their own terrorism insurance products. The Act has been extended twice, most recently in 2007, and will expire on Dec. 31, 2014.


♦ Photo by hyunlab/Flickr

♦ Graph from The Marsh Report: Terrorism Risk Insurance 2010

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