TERRORISM RISK

Terrorism insurance and associated risk management strategies are dynamic and complex issues, with many interdependent factors contributing to managing the risk. Foreign relations, the effectiveness of homeland defense, and the ambiguous nature of the risk make terrorism losses extremely challenging to predict and quantify. It is difficult for insurers to effectively price and reserve capacity for their potential exposure to catastrophic terrorism losses.

The standalone terrorism market has grown and evolved in recent years and now offers a number of viable program solutions for companies to mitigate their terrorism risks.

Marsh's Approach to Terrorism Insurance

• Assessment - Together with the corporate professional responsible for risk management, Marsh Canada’s Political Risk broker will help define more clearly the exposure and quantify the adequate indemnity level.
• Structure - Accessing all markets available for this line of coverage, Marsh Canada’s Political Risk Practice will present the terrorism program structure and negotiate terms of coverage (wording, premium, exclusions, etc.)
• Placement - Upon a client's decision on the most adequate structure for its terrorism exposure, Marsh Canada’s Political Risk Practice will bind coverage, coordinate document closure of the policy, and collect premium.
• Follow-Up and Benchmark - Marsh tracks every movement in the constantly changing terrorism insurance industry. This knowledge is shared with clients via benchmark analysis, market updates, and general news that might concern one specific client and/or exposure region.