European insurers in joint effort to cover ‘terror risks’

The agreement comes after calls by insurers and reinsurers, following the September 11 attacks, for state/private partnerships to cover the threat of losses from terrorist action.

Zurich Financial Services, XL Capital, Swiss Re, France's Scor, Hannover Re and Allianz have agreed to support the company, which will be called Special Risk Insurance and Reinsurance Luxembourg (SRIR). The company aims to start underwriting by the end of the year, and will be backed by Eur500 million in capital.

The companies said SRIR would limit losses to Eur275 million per event within a radius of 600 metres. Business interruption losses will not be insured.

In a joint statement, the companies stressed that private solutions “remain complementary to state-sponsored schemes… and are not meant to replace them”. A spokeswoman for Zurich Financial Services said the private solution was created in order to provide cover as soon as possible.

Scor holds a 9.1% stake in the SRIR. The other backers have 18.2% each.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here