Terrorism risk: more coverage, lower rates.There's good news for both buyers and sellers of property terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities.
It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very , says risk and insurance services giant Marsh Giant Marsh is a wetland made up of mud flats, and tidal flats in Richmond, California. The marsh is located on the western coast of Richmond near the city's landfill between San Pablo Creek Marsh and Breuner Marsh. Inc. Nearly six in 10 large and mid-sized U.S. businesses obtained insurance to cover property terrorism risks during 2005, a dramatic increase from the 2003 average of 27 percent and up from 50 percent in 2004. Meanwhile, however, the cost of property terrorism insurance in 2005 was 25 percent lower on average than in 2004.
A recent report from Marsh finds the purchase of property terrorism insurance in 2005 varied considerably, depending on a company's total insured values, location and industry sector. The report is based on data compiled from 1,623 businesses and government entities that purchased or renewed property insurance policies in 2005. Notably, while smaller companies (those with total insured values under $100 million) were far less likely in the past to purchase this coverage, nearly half of them did so in 2005.
"Take-up" rates--the percentage of companies buying the coverage--varied considerably by region: about 67 percent of firms in the Northeast and 58 percent of Midwestern Mid·west or Middle West
A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and firms bought property terrorism insurance in 2005, compared with 53 percent in the West and 50 percent in the South. Take-up rates increased most dramatically in the West--to 53 percent from 34 percent in 2004--and in the Northeast, where they rose to 67 percent from 53 percent in 2004.
"There's an increasing awareness of terrorism among businesses across the country," said Robert Blumber, a managing director in Marsh's North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Property Practice. "Clearly, businesses and their leadership at the highest levels recognize that this exposure is likely to be with us for some time, and that insurance can help them address some of the financial consequences of this risk."
Within specific industry sectors, financial institutions, real estate firms and health-care facilities had the highest overall take-up rates, each exceeding 75 percent. In addition, companies in media, hospitality, transportation, food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , technology, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and educational institutions all had take-up rates above 60 percent.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Marsh's report, capacity in the stand-alone property terrorism insurance market is relatively stable, though limited. The amount available for a specific risk can vary significantly, depending on the risk's location, an insurer's accumulated ac·cu·mu·late
v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates
To gather or pile up; amass. See Synonyms at gather.
To mount up; increase. exposure and the concentration of exposures in a given area.
Print copies of Marsh's 30-page report, Marketwatch: Terrorism Insurance 2006, are available from local Marsh offices.