German chemicals group BASF is in discussions with other blue-chip German firms about setting up their own reinsurance company to provide protection against terrorism risks no longer covered by reinsurers.
Reuters reported a BASF spokesman as saying that the company was in talks with a number of other German companies but the negotiations were still at an early stage. He did not give details.
German companies and insurers have also been in talks with the German government over how the state could help them provide cover against terrorism risks.
Last year, the chief executive of Europe's biggest insurer Allianz, Henning Schulte-Noelle, proposed a system similar to the British Pool Re system, which was introduced in Britain in response to attacks by the IRA.
German media reported on Wednesday that other blue-chip companies who were interested in setting up their own reinsurer included electronics and engineering giant Siemens and airline Lufthansa.
