Demand for Terrorism Risk Insurance Continues
The number of companies purchasing terrorism insurance has remained constant
The number of companies purchasing terrorism insurance has remained constant – in the mid-60 percent range – since 2009, according to insurance broker Marsh’s 2014 Terrorism Risk Insurance Report.
Education organizations purchase property terrorism insurance at a higher rate (81 percent), and health care organizations, financial institutions and media companies follow up, with rates all above 70 percent.
Massachusetts has the highest rate of property terrorism insurance take-up (84 percent), followed by Maryland at 81 percent. Hawaii has the lowest rate – 36 percent. Construction companies paid the most for terrorism insurance in 2013, a median rate of $66 per million of total insured value (TIV), and health care companies paid the least – merely $14 per million of TIV. For enterprises with TIVs of more than $1 billion, median rates fell slightly from $19 per million in 2013 to $18 per million now.