2011-08-01
By staff reporter
The Danish Insurance Supervisory Authority, Finanstilsynet, has entered into an agreement with US Re to conduct a study of terrorism risk reinsurance capacity in the Danish market.
“We’re especially pleased to continue working with the Danish government to determine the private market capacity to reinsure terrorism risk,” said Tal Piccione, chairman and CEO of US Re Companies in the US.
Reinsurers operating in the Danish market are being asked to report the amount of reinsurance capacity they would be willing to commit to the Terrorism Insurance Pool for property insurance covering nuclear, biological, chemical, and radioactive risks to buildings, contents, railroad vehicles, motor and marine hull in Denmark along with loss of profit.
McGuire stated that participating companies will have access to a State reinsurance guarantee limited to DKK15bn annually on a stop loss basis. “The amount, in excess of which the guarantee attaches, is determined annually by the Ministry of Economic and Business Affairs based on recommendations of the Terrorism Insurance Council.
"This amount will be determined as the point at which the international reinsurance market can no longer provide sufficient reinsurance capacity to cover the NBCR risks,” he noted.
The Terrorism Insurance Pool will pay an annual risk premium to the Danish State for having the guarantee available. US Re is also reviewing alternative mechanisms to provide capacity for the Terrorism Insurance Pool.
US Re also was retained earlier by the US Treasury Department as its sole consultant in connection with the Terrorism Risk Insurance Program launched under the auspices of the Terrorism Risk Insurance Act (TRIA) in 2002 to protect against acts of terrorism for United States related interests.
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