Chris Jones
The IUA has welcomed a vote by UK motor insurers to mutualise risks for terrorism claims. The Motor Insurance Bureau (MIB), a not-for-profit body which deals with uninsured ‘hit and run’ accidents, will in future provide compensation for victims of vehicle-related terrorist events.
Members of the IUA’s Casualty Treaty Group first raised concerns about a growing spate of attacks involving vehicles at the beginning of last year. The group highlighted difficulties in quantifying and pricing such terrorist risks and that unlimited exposure from a single event could fall to just one or two reinsurers.
Chris Jones, Director of Legal and Market Services at the IUA, said: “The mutualisation of motor terrorism risks promises an effective answer to a market problem that IUA members have been concerned about for some time.
“Our Casualty Treaty Group has liaised closely with the Motor Insurance Bureau and the Association of British Insurers as the solution has been explored and we look forward to a detailed arrangement being operational soon.
“The vote is the culmination of industry wide collaboration on an issue that impacts all facets of the market. It represents an imperative solution to ensure that innocent victims of motor terrorism incidents continue to receive the full compensation they deserve, in a way that is manageable for the (re)insurance market. This approach mirrors other schemes throughout Europe and is fully supported by the IUA.”
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Viewers can find herebelow a comment for the International Underwriting Association on the vote by Motor Insurance Bureau members to mutualise motor terrorism risks.
