Lloyd's: terror concerns slow growth.
Michael O'Connor, an underwriter at Ascot Underwriting Ltd. in London, believes that more than 30 Lloyd's syndicates write terrorism cover, up from eight to 10 in 2002. Globally, O'Connor said, the terrorism insurance market is "getting bigger all the time."
O'Connor estimates per-risk capacity within Lloyd's at $1 billion, with a further $500 million each available in Bermuda and the United States. The involvement of Berkshire Hathaway could take the total to $3 billion.
Chris Parker, political violence underwriter at Beazley Group, said per-risk global terrorism capacity "is somewhere in the region of $2 billion.
But that would be for a very straightforward benign risk in a country where everyone's got available aggregate."
The Lloyd's market could probably provide about $1.5 billion in per-risk capacity, he said.
Stephen Ashwell, global product head of political violence at Hiscox plc, estimated terrorism premium income at Lloyd's at a "fairly steady" $500 million a year. "It's grown a little bit in the last two or three years," he said.
Listen to interviews with Stephen Ashwell and Michael O'Connor at http://www.bestreview.corn/audio.
Fading Priority Companies see themselves as generally prepared for terrorism threats, but see the risk as less of a priority than others. Priority Preparedness Overall 5.4 6.5 Cyber Attacks (Malicious) 5.3 6.0 Theft of Assets or Intellectual Property 5.2 6.1 Fraud and Corruption 5.4 6.3 Cyber Risk (Non Malicious) 5.1 6.2 Strikes or Industrial Action 4.2 5.8 Piracy 3.9 5.6 Terrorism 3.9 5.0 Riots and Civil Commotion 3.7 5.1 Expropriation of Assets 3.4 5.2 Abrupt Regime Change 3.3 4.8 Source: Lloyd's Risk Index 2011 Note: Table made from bar graph.