The key drivers that influence terrorism insurance pricing include location of risk, insurer’s accumulation of exposure, concentration of exposure, and available market capacity.
Stand-alone rates can, at times, be more competitive than the pricing of embedded terrorism in property programs, and for some clients the stand-alone approach may be appropriate and worthwhile to investigate, according to Tarique Nageer, Marsh Property Specialized Risk Group.
Stand-alone terrorism insurers are regularly monitoring, and reacting to, the evolving global business environment and global terrorism activity.