General insurance Terrorism risks and insurance

Phabbyfundz

Active member
From an insurance view point , terrorism risks is very different from the kind of risks typically insured. To be readily insurable, risks have to have certain characteristics.
The risks must be measurable. Insurers must be able to determine the possible or probable number of events (frequency) likely to result in claims and the maximum size or cost (severity) of these events. For example insurer know from experience about how many car crashes to be expected per 100,000 mile driven from any geographical area and what these crashes are likely to cost. As a result they can charge a premium equal to the risk they are assuming in issuing an auto insurance policy.
A large number of people or businesses must be exposed to the risk of loss but only a few must actually experience one.
 

btaliat

VIP Contributor
Based on your analysis, it may difficult to measure the rate at which terrorism may happen hereby making the type of insurance to be very slim to go for. The fact that many countries frown at the act of terrorism will even make it difficult for insurance companies to include it in their scope.
 

Chibson

VIP Contributor
this is not a common type of Insurance because the government of every nation try as much as possible to fight terrorism. Finding insurance companiesthat offer this type of insurance may be difficult but it is quite possible depending on your country of residence. Some countries are averaged by act of terrorism and this kind of insurance can be of a great help to them.
 

Mandy96

Valued Contributor
Terrorism is something that has been a very big problem in nigeria especially in the rural areas. They affect the farming business negatively and it’s starting to scare the farmers off in order to invest in the business because they kill them and do some terrible things to them which is very bad for agriculture
 

Wisdom01

Valued Contributor
I don't even think there is insurance available as such , it's definitely my first time , seeing insurance risk called terrorism risk , the only part I know is that if you want to protect the car you are describing you need to get an auto insurance cover for such protection
 
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