Insuring terrorism risks
Committee on Insurance, 24 June 2002

On 18 April 2002, ICC's Committee on Insurance organized a roundtable discussion on the risk management and insurance consequences of September 11. The meeting was attended by representatives from the whole private insurance industry and risk managers from many business sectors. The conclusion of the roundtable discussion was as follows.

The tragic events of September 11 resulted in the largest loss ever experienced in the insurance market. They brought to everyone's attention the key role the insurance industry plays by ensuring insurance cover and business continuation in many sectors. Prior to September 11, terrorism exposures were, in the main, assumed by the commercial insurance market. However, whilst the private insurance industry is willing to continue to assume these risks to the extent that this is possible, there is now evidence that the contraction in the coverage available may be hindering economic activity. In the light of this, the ICC Committee on Insurance believes that:

• government and the insurance industry cooperate to develop solutions to ensure business continuation and insurance cover;
• terrorism insurance should, to the extent that it is possible, be provided by the insurance market;
• at the same time, governments should recognize and define their role in covering terrorism risks which cannot be assumed by the insurance market.

Document n° 113-2/57
24 June 2002