The explosion which rocked Manchester last night, killing 22 and leaving more than 50 injured, could have an impact on the insurance industry.
The tragic attack, which Greater Manchester Police have said they are treating as a “terrorist incident” until they know otherwise, struck outside of Manchester Arena at around 10:30pm local time as concertgoers left an Ariana Grande concert held in the venue.
Whilst details surrounding motives of the attack are still unknown, the insurance industry could be impacted in both terrorism and contingency lines of cover.
Natasha Barker, manager, corporate at AJG and subject matter expert on terrorism insurance and venues & events, said that the international terrorism market could be impacted as more details emerge surrounding the attack. However, she added that Australian coverage will not be directly impacted.
“In my opinion there is sure to be an impact but to what extent will depend on the scale of the costs involved with this and other recent attacks,” Barker told
Insurance Business
“In the last few years, the international market for terrorism has tended to provide a bit more capacity and broader coverage but there has been some speculation following attacks in Paris, Brussels and London that this would likely be reviewed – particularly as the types of attacks have been changing, for instance the use of vehicles.”
Barker also noted that the attacks in Manchester are “sure to have repercussions on any further event insurers are considering to cover and price”.
As contingency cover becomes more widely known, Barker noted that take-up still remains a challenge due to pricing and policy exclusions.
Barker said that it is important for brokers to keep clients updated on emerging risks and new products that cover terrorism-related risks.
Broader policy wordings in active assailant policies offer clients coverage for a range of risks and Barker noted that these may increase in popularity.
“I think it will hit home to a lot of Australian venues and, whether that prompts them to buy contingency style coverage, I think more emphasis will be on risk mitigation but I wouldn’t be surprised if more active assailant policies are taken up,” Barker continued.
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