As we move into the second half of 2018, Miller’s Head of Political Violence and Engineering in Singapore, Piers Hughes, discusses the relevance of terrorism insurance in Southeast Asia and where he sees the market trending.
The Singapore terrorism market, including coverage for political violence, now accounts for well in excess of USD100m in premiums. Terrorism attacks are some of the most devastating and expensive events for the providers of terrorism insurance and can represent the most disruptive of events for insurance buyers. Following a loss, many insurers and reinsurers are reluctant to provide coverage at attractive terms to those buyers.
Without question, there is an ever-increasing threat to the safety and wellbeing of people around the world. At the recent Association of Southeast Asian Nations (ASEAN) Foreign Ministers' Meeting it was noted:
“The scale and complexity of the terrorist threat faced by our region continues to grow with the influx of returning foreign terrorist fighters and cross border movement of terrorists.”
Miller's Terrorism and political violence expertise
Terrorism insurance remains a key focal point of consideration for all insurance buyers in Southeast Asia, however there remains an underlying systemic issue in this space:
- Due to various reasons, Governments choose not to declare an incident as an act of terrorism and/or political violence whilst typically, such policies require Government declaration to be triggered.
- An insured, despite knowing that the policy may not be triggered, may find more dubious means to ensure coverage is triggered.
It has never been more vital to have the appropriate coverage in place to protect against the increasing diversification of terrorism and political violence related events. No detail is too small and we encourage all buyers to check their policy closely.
For further information and to discuss your terrorism insurance requirements, please contact Piers Hughes.