Terrorism Insurance

Islamic terrorists have changed their strategy by moving away from attacks on major infrastructure and buildings to attacks that cause as many casualties as possible. By attacking large gatherings, terrorists seek to generate more attention, as attacks of that kind provoke highly emotional reactions from the public. This is why they are now choosing sports events, music festivals and shopping centres as their new targets.

Market Situation

Islamic terrorists' new strategy is a particular challenge for events managers when selecting suitable locations and setting up programmes. Most events managers are aware of the general risks. However, what is often missing are measures to cope with the new challenges - and the ways and means to communicate risk- minimising measures to event visitors effectively.

Number of religiously motivated terror attacks in the European Union

2007–2017

Source: European Union Terrorism Situation and Trend Report 2018

Events managers have to consider the following factors:

Response time - how long does it take for the police to arrive on site, identify and, ideally, disable an offender?
Impeding the access of attackers in order to ensure public safety. Some events managers have already invested in barriers and other methods to impede access and so prevent terrorist attacks using vehicles. Currently, such equipment is mainly being used at public events such as Christmas markets, carnivals and processions.
Extensive communication with event visitors is required in order to ensure organised and targeted evacuation in the case of a terrorist attack.

Outlook

In future, insurers will face higher demand for terrorism insurance that also covers terrorist threats. Some insurers are already offering this additional component within the scope of existing terrorism cover, with lower insurance sums. It remains to be seen whether more insurers will follow this trend.

Market Trends

In Germany, terrorist activities are increasingly being perpatrated by both far-left and far-right groups. Since the attack on the G20 summit in Hamburg in 2017, ultra-left groups have been under surveillance. The "Reichsbürgerbewegung" ("Reich Citizens' Movement") is another far-right group that has been prepared to use violence in recent years.