A joint venture by reinsurers to provide terrorism insurance for property and business interruption is to be shut down.
Special Risk Insurance and Reinsurance Luxembourg (SRIR) has stopped writing new business and is expected to be shut down by 2005, Allianz of Germany.
SRIR was launched to satisfy demand for terrorism cover following the terrorist attacks of 11 September 2001. As well as Allianz, SRIR's shareholders include Zurich Financial Services, XL Capital, Swiss Re, Scor and Hannover Re.
However chief executive Alan May said market demand had not met company expectations. He said: "The syndrome 'I am not a terror risk' certainly prevails."
