Airmic hits back at insurers and Treasury over terrorism cover crisis

The Association of Insurance and Risk Managers (AIRMIC) has hit back at insurers and the government at the slow progress being made to resolve the lack of terrorism cover in the UK.

Underwriting initiatives in the US and Europe, in particular Allianz's new venture with Zurich and Munich Re to offer war and terrorism cover for its clients, has left the UK lagging behind.

Airmic's executive director, David Gamble, said his members were "disappointed by the slow progress" to resolve this issue.

"Six months on from the terrible events of September 11 which caused this crisis over loss of cover, our members still face the prospect of being unable to insure their operations fully. This despite several meetings with representatives of the insurance industry and the Treasury," said Gamble.

The insurance industry is suffering from a "too many cooks syndrome", he said, and instead of finalising the issues surrounding commercial property and business interruption (BI) which the Treasury promised to support in December, the issue has been widened to "include liability issues connected with terrorism."

Airmic had expected the agreement on whether Pool Re should cover beyond fire and explosion for property and BI would have been finalised by the proposed date of March 1.

Gamble said: "Instead the first meeting with the Treasury will only be held on March 8, two and a half months after the Treasury made its original declaration of support."