MARKET IS DEVELOPING TERRORISM COVER RESPONSES, BROKER SAYS

While limited time has passed since the expiry of the terrorism backstop and the next move for the legislation remains uncertain, reports suggest the market is attempting to develop responses to a potential gap in cover. In its First View renewals report, Willis Re said the market is working to respond to the non-renewal with terrorism coverage being offered on a stand-alone basis as well as embedded within catastrophe covers. However, the broker reported coverage for nuclear, biological, chemical and radiological terrorism is proving the major restriction in terms of price and availability of capacity. Broker Marsh said it had been working with clients to address concerns, including the availability of short and longer term solutions while the renewal remains in limbo. Marsh said its government relations department was continuing to negotiate with policymakers to stress the importance of renewing the programme.