The United States, UK, and Japan issued alerts last week, warning of a possible "Mumbai style” terrorist attack in Europe, including to transportation systems and tourist attractions.

"The warning serves as a reminder that terrorism remains a persistent threat, and at the forefront of risk management,” noted Ben Tucker, Marsh Property Specialized Risk Group Leader.  “Foreign relations, the effectiveness of homeland defense, and the ambiguous nature of the risk make terrorism losses extremely challenging to predict and quantify. Companies continue to consider risk management strategies appropriate to protect their employees and facilities against terrorist attacks.”

Various terrorism government schemes and pools exist for multinational clients to insure their global locations against acts of terrorism.  Marsh’s 2010 Terrorism Report provides more information about the different options available around the world.   

The standalone terrorism and political risk markets can also offer broader political violence insurance to clients with locations in developing countries. Clients may also wish to consider purchasing political violence insurance, either on a standalone basis or as part of a current terrorism program with a separate sublimit for political violence perils.

Organizations should review their existing terrorism insurance policies, and consult with their Client Executive to address any risk management concerns.

Please visit Marsh’s 2010 Terrorism Report to learn more about the terrorism market in the U.S., including pricing trends and coverage considerations.