One of the largest insurance company’s in the United States is raising the ceiling on property claims for acts of terrorism to $1 billion in response to client concerns, according to a release Wednesday.
American International Group Inc. (AIG) previously set the limit for property claims tied to acts of terrorism at $250 million.
The firm announced the increase Wednesday morning, noting that the new quadrupled limit is available to clients on a stand-alone basis or as expanded limits within AIG’s Large Limits property insurance offering, which provides clients with all-risk coverage limits up to $2.5 billion per occurrence.
AIG decided to make the change after finding that many insurance clients in large cities, often categorized as Tier 1 terror risks, had a limited capacity for terrorism coverage and wanted greater protection from the risk of terrorist attacks. The insurance provider also found that clients, especially those operating in multiple nations, want to match with an insurance provider that provides greater terrorism coverage.
The firm says it will manage the newly expanded terrorism risk burden by using its proprietary terrorism risk engineering services that it created in conjunction with Clemson University in 2015.
“This coverage provides our clients with market leading capacity that will respond to terrorist attacks worldwide. Demand from our clients for better protection against this risk has been strong. With our reinsurance partners and the investments we have made in analytics and risk engineering, we are confident in our ability to meet this demand and help our clients better prepare for, mitigate, and manage a terrorism event,” said President of Property and Special Risks, George Stratts, in a press release.
Some 3,140 Americans were killed in terrorist attacks between Sept. 11, 2001 and Dec. 31, 2015. Of these deaths, 3,020 occurred on domestic soil, including the 2,902 deaths stemming from the Sept. 11 terrorist attack on the World Trade Centers in New York City, N.Y.
Acts of terror are driving many American companies to seek insurance coverage for property damages in the event of a terrorist attack.
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