Does Aon's new venture signal innovations in terrorism cover?
White Rock, the Aon-owned protected cell company, has set up a new company to provide terrorism cover. The company will allow buyers of terrorism cover to determine their preferred level of risk retention or their preferred markets for terrorism exposures.
With the London bombings still fresh in many minds, uncertainty over the continuation of the Terrorism Risk Insurance Act of 2002 (TRIA) in the US and little alternative to the European government initiatives, Aon has taken steps to branch out on its own.
“With the demand for terrorism insurance growing, the formation of White Rock Insurance (Europe) gives insurance buyers valuable new options in terms of how they retain risk and in the choice of markets they want to use,” said Paul Sykes, a director at White Rock. “This will allow corporates to make premium savings where previously these would have been paid away to terrorism pools such as GAREAT in France or Pool Re in the UK.”