Aon and Chubb launch new terrorism cover

Aon and Chubb have collaborated with Lloyd’s to develop 'Platinum', a terrorism and political violence solution that addresses the demands of an increasingly regulated environment. The product is designed for multinational companies operating in challenging global space that are required to meet the demands of regulatory networks while also mitigating a diverse spread of country risks. These include the increased threat posed by terrorism and political violence. Platinum has been created to respond to clients who wish to fulfil local regulatory requirements in all territories, rather than centrally through a parent head office location. This previously limited solution has been up-scaled to offer unprecedented limits and coverages within the stand-alone terrorism and political violence market. This need stems from the fact that many territories simply will not permit non-admitted coverage; therefore, to allow for local payment of claims, it is mandatory to provide admitted paper. Platinum provides globally admitted cover that also facilitates the settlement of all local premium taxes and the smooth repatriation of funds at the point of loss. The product is fully compliant and designed to be multinational. Platinum is also coordinated through a single umbrella policy that ensures compliance with local regulatory and tax requirements, with policies issued locally in each territory. Centrally coordinated by Aon and Chubb, clients will benefit from the economies of scale of a global policy approach, priced and underwritten in collaboration with the Lloyd’s market to ensure competitive cover, and backed by Chubb. Drawing on Chubb’s global network and experience servicing accounts in local markets. Key benefits include: Tax and regulatory compliant, guaranteed capacity, AA rated security, reach to over 120 countries, limits of up to $500m per policy, bespoke wordings and automatic extensions with additional coverages available for liability, non-damage business interruption and cyber. Terrorism and political risk is one of the fastest growing market and many insurers are pushing new products in the market. Earlier this week MS Amlin strengthened its European efforts with a special war underwriting specialist, who will work to expand its terrorism and political risk coverage. Earlier this year XL Catlin announced several major new investments in its political risk coverage. The company launched a corporate CPR (Crisis Prevention and Response for corporate clients) product. The company described it as a global risk management and insurance platform that is designed to supposedly help companies of any size prevent, prepare for and respond to crisis situations, and help protect their people, assets, property and finances. The policy covers 45 named crisis events under the six categories of catastrophes, criminal risks, cyber threats, people risks, political risks and political violence, and the solution may be bought in conjunction with a variety of other traditional risk transfer coverage including kidnap & ransom, emergency evacuation and a range of other crisis management insurance products. As well as this, Mairtin O’Griofa, executive director for political risks and structured credit at Aon Risk Solutions, told Reactions earlier this year, that credit and political risk insurance (CPRI) capacity has expanded as new players enter the market lead to cause and effect. “We understand that this is because other classes of insurance are not delivering the required returns. But at a macro level, it’s also because the low interest rate environment means investors are looking for returns and CPRI is a relatively profitable insurance market,” O’Griofa said.

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