Call for an insurance pool to cover terrorism

Insurers are calling for the Federal Government to establish an insurance pool to cover claims for acts of terrorism.

As of 1 January 2002 the world’s largest reinsurance providers will no longer cover acts of terrorism, leaving Australia’s insurers wide open to huge payouts in the event of terrorist attacks. The insurance companies want a pool to be set up which can be drawn upon in the event of terrorism claims. The pool would be funded by a levy on all insurance policies.

Because insurers will not be able to cover acts of terrorism from January 2002, the state governments are looking for an interim measure to prevent insurers from excluding ‘acts of terrorism’ from their policies before a pool can be established.

The Australian Financial Review, p64, 30/11/01