Demand in the United States for terrorism risk insurance levels off

Terrorism risk insurance is available and affordable in the United States, but demand remains flat even as the danger of an act of terror may be at its highest level since Sept. 11, 2001, according to the latest issue of BestWeek U.S./Canada.
Overall capacity of insurance provided by the private market has increased since 2006 and prices of insurance and reinsurance have generally fallen, according to a presidential panel’s report on market conditions for terrorism risk insurance.
Nevertheless, capacity is limited in high-risk geographic locations and properties and policyholder take-up has leveled off, BestWeek U.S./Canada reports.
“Some 40% of businesses are not purchasing the insurance,” A.M. Best notes.