based insurance companies to pay claims related to ransom payments to foreign terrorist organisations.
concretize partnership deals that would enable them play in the market, since capacity is very limited or
would amend existing laws to make sure UK-based insurance firms do not provide cover for the payment of
for kidnap and ransom to help prevent an important element of terrorist financing.
and ransom insurance. Experts note that the vast majority of kidnappings are not perpetrated by proscribed terrorist organisations, that it is already illegal for UK-based insurers to underwrite ransom payments to terrorist groups and that policies include standard exclusions.
legislation and by sanctions issued by the United Nations as well as the US and the EU,” said Doug Milne,
chief executive officer at Special Contingency Risks (SCR), a unit of Willis.
illegal to underwrite ransom payments to terrorist groups, the bill will close a legal loophole that allows
insurance companies to recompense individuals who have paid ransom payments.
“For some time the UN has prohibited the reimbursement or payment of ransoms to proscribed terrorist organisations, and Hiscox, like the rest of the London Market, operates under these parameters,” said Bronek Masojada, chief executive of Hiscox in a statement.
discussions are ongoing. However, a statement from the Lloyd’s Market Association (LMA) suggests that insurers would be concerned if the changes do not tally with those in other countries.
replicated throughout the EU and the US, or the intended effect of this legislation will not meet its stated
payments between 2010 and 2013. Switzerland, Spain and Austria have paid out $21.5m to the terrorist group between 2008 and 2010. A further $20.4m has been paid by Qatar and Oman, which acted as intermediaries to free an Austrian, Swiss and two Finnish nationals from Yemen’s Al-Qaeda affiliate between 2012 and 2013.
because they help drive recruitment and provide a source of financing, according to Maplecroft. According
to the UN, IS has received $44m in ransom payments in the last year alone.
said at one of the strategic meetings with a foreign partner in Lagos that Nigerian insurance companies
needed partnerships with foreign firms to develop the local market.
global insurance market including the Lloyds of London would help local insurers understudy their experience, build skills and key into growing risks for protection of citizens and assets.