As reported by Insurance Insider, Charles Berry, Chairman of BPL Global, spoke at a recent meeting of the London Market Claims Council on the mismatch between insurance cover sold for emerging market property and the risks faced by insured businesses.
“Standard terrorism cover is simply the wrong cover,” Berry said. “The market’s standard terrorism wording excludes everything that the Arab Spring is about.”
Mr Berry went on to call for insurers and businesses with operations in emerging markets to rethink their approach to political violence insurance. Currently, coverage for political violence risk is fractured, with the retention of risk split between the specialist political risk market, the marine, aviation, and property markets, and pure terrorism underwriters. The answer to insuring property in emerging markets, according to Mr Berry, lies in the “broader coverages already available in the political risk market.”
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