Market Overview

XL Group Introduces New Standalone Terrorism Insurance Policy

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To help US businesses address potential
gaps in coverage provided by the Terrorism Risk Insurance Program
Reauthorization Act (TRIPRA), XL Group's US Crisis Management business has
introduced a new standalone Terrorism insurance policy.

According to Ben Tucker, head of XL Group's US War, Terrorism and Political
Violence underwriting team, "With TRIPRA reauthorization still in question or
uncertainty around what the scope of protection in the future might look like
if it's extended, many businesses do not want to leave their terrorism
insurance protection in question. Instead, they're seeking TRIPRA
alternatives that not only address potential coverage gaps but extend
protection in more situations, without a government certification
requirement."

Under the current TRIPRA legislation, an act must be 'certified' by the US
Treasury Secretary, Secretary of State or Attorney General as an act of
terrorism for businesses to collect federal terrorism coverage. Also, losses
less than $5 million are not protected under the federal program. As of April
2014, for instance, Boston Marathon bombing claims for property and business
interruption amounted to approximately $1.9 million, according to a
Massachusetts's state report, not near TRIPRA's established threshold.

"While $1.9 million in losses might not have been enough to certify the Boston
Marathon bombings as an act of terrorism, it certainly was enough to raise
concerns among many businesses," explained Mr. Tucker. "A $100,000 uninsured
loss can be too much for many businesses to sustain without the right
insurance protection. So businesses have a higher degree of coverage
certainty, we've created a market-leading policy that more broadly and
comprehensively addresses acts of terrorism and sabotage."

With policy limits of up to $100 million available, XL Group's insurance
companies new Terrorism insurance policy:

o Includes a broad definition of terrorism including coverage for political,
religious and ideological purposes;
o Extends to cover an act of sabotage;
o Provides insurance coverage often limited or excluded by other terrorism
markets for business interruption, extra expense, loss of rental income,
service interruption and radiological contamination;
o Is recognized by lenders as an alternative to TRIPRA

XL Group's insurance companies offer worldwide insurance for assets that are
exposed to war, terrorism and political violence attacks. XL Group's
standalone terrorism coverage is provided by XL Group plc's insurance
subsidiaries XL Specialty Insurance Company and Indian Harbor Insurance
Company.

Posted-In: News Press Releases

 

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