Terror Risk Specialty

Terror Risk Specialty - Guy Carpenter

The Terror Risk Specialty was created in response to the market crisis following the events of September 11, 2001. The Specialty focuses our substantial resources on managing clients' terror exposures throughout the world and across various business lines, including but not limited to, property, workers compensation and accident and health. We keep abreast of pricing and capacity for terrorism reinsurance coverage available in the market as well as issues involving the integration of terrorism coverage into private reinsurance programs and in standalone structures.

The Terror Risk Specialty identifies coverage that can be included within existing placements and is well positioned to structure and secure the best and largest amount of available terrorism reinsurance capacity for our clients. Our specialists can also help answer clients' questions regarding coverage provided by the U.S. Terrorism Risk Insurance Act (TRIA).

We utilize a comprehensive suite of tools to perform aggregation studies, analyze clustering and help clients quantify their terror exposures by lines of business. Our use of all the major catastrophe software vendors' terrorism models helps clients explore the possibilities of terror loss using a judgment-based approach that goes beyond purely deterministic modeling and minimizes the issues associated with predicting human behavior. In addition, our proprietary pricing model, Terror ROLePlay, helps our clients effectively estimate the pricing for any variation of certified terrorism protection.

Global Terror Update 2010:
Terrorism - Reinsurers Standing By

As we approach the ninth anniversary of the September 11, 2001 attacks, the threat from terrorism continues to pose a risk to the (re)insurance industry. The nature of the threat has changed since 2001, but terrorism remains a constant and serious risk with global recorded terror incidents at historic highs. Terrorist organizations operating in unstable countries present a danger to the world, and the recent flurry of terrorist activity serves as a reminder that individuals and groups remain a serious threat.