The US Terrorism Risk Insurance Act 2002 is causing insurers' workloads to spiral over Christmas.
Insurers are already under pressure during the busy renewal season complying with the 90-day deadli ...
The US Terrorism Risk Insurance Act 2002 is causing insurers' workloads to spiral over Christmas.
Insurers are already under pressure during the busy renewal season complying with the 90-day deadline of 26 February, but this has been intensified by a lack of clarity in the legislation, said market sources.
US law firm LeBoeuf, Lamb, Greene & MacRae has been advising both Lloyd's and the International Underwriting Association (IUA) on proper interpretation of the legislation and how to implement its terms.
A senior Lloyd's insurer said: "They [LeBoeuf] are also acting to some extent as our ambassadors with the US Treasury."
Under the three-year risk-sharing programme, the US government will cover 90% of losses in excess of $10bn.
Since the WTC attacks, most insurers have built terrorism exclusions in to policies, but these have been nullified by the new act.
UK insurers with business in the US are now automatically covering terrorism, and have been given 90 days to price the added cover.
Insureds must then choose whether to accept the new premium or opt for the exclusion again.
