AEGIS London has increased the capacity of its digital terrorism insurance product, SHIELD (Terror), from US$250 million to US$500 million.
The product, which is accessible through the insurer’s digital quote-and-bind platform OPAL, is backed by a consortium led by AEGIS London and targets US businesses operating via surplus lines brokers.
The expanded offering is aimed at meeting demand for higher terrorism coverage, particularly from larger organisations with multiple locations and broader exposure. The increased capacity enables AEGIS London to support national-level enterprises in addition to the small and medium-sized businesses the product originally served.
Alongside the capacity increase, AEGIS London has revised SHIELD (Terror)’s sub-limits. The active assailant sub-limit has been raised to US$1 million, reflecting a rise in demand for cover related to shooting incidents across the United States.
The policy also now includes standardised US$5 million sub-limits for denial of access and loss of attraction. Denial of access provides protection for losses caused by restricted entry to insured properties due to a covered event, while loss of attraction addresses revenue reductions stemming from a drop in footfall or visitor numbers.
Calum Williams (pictured top right), digital development manager at AEGIS London, said the capacity increase and product updates were intended to address the changing nature of terrorism risks and the requirements of clients operating in this environment.
In recent years, the terrorism insurance landscape has been marked by evolving threats and challenges in securing coverage. While insured losses from terrorism events have remained relatively low, the industry faces complexities in addressing emerging risks and ensuring adequate protection for policyholders.
Securing terrorism coverage presents several challenges. The complexity of the Terrorism Risk Insurance Act (TRIA) can lead to confusion among policyholders regarding coverage specifics and claim processes, potentially deterring some businesses from obtaining adequate insurance.
Emerging threats, such as cyber incidents and the misuse of artificial intelligence, also complicate underwriting processes and may result in coverage gaps.
Additionally, the increasing threat of state-sponsored cyberattacks has raised concerns about the adequacy of existing terrorism insurance frameworks. For instance, the UK's Pool Re has acknowledged the potential obsolescence of traditional terrorism insurance models in the face of sophisticated cyber threats.
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