Biba is conducting research into exactly what is covered by terrorism policies. This follows complaints from confused brokers.
Biba chief executive Mike Williams said government changes to Pool Re ...
Biba is conducting research into exactly what is covered by terrorism policies. This follows complaints from confused brokers.
Biba chief executive Mike Williams said government changes to Pool Re from
1 January, the expiration of many reinsurance treaties on 31 December last year and the untested nature of new terrorism policies have combined to make the current renewal period particularly challenging for brokers.
Williams said: "Individual insurers and underwriters, mostly because of the constraints of their own reinsurance, are applying different definitions of terrorism and different inclusions and exclusions to their policies. It is difficult to establish how the insurers will interpret their own exclusions."
Confusion is particularly acute in relation to larger risks where a number of insurers, each with different definitions and interpretations of terrorism, are participating in a collective policy.
In an attempt to shed some light, Biba is analysing the wordings of terrorism policies offered by all the major insurers. It will hold a seminar for its members in April to explain the differences in cover and to formulate a common approach.
It is understood that at least one major insurer has issued prices and cover, only to withdraw them for review following publication of cover and pricing from rivals.
