Unfortunately, recent changes in the nature of international terrorism on a global scale indicate that these problems will persist in the future. Footnote 74 also shows that no country today can be considered immune to international terrorism, as the world becomes increasingly global and cross-border interdependencies increase. Moreover, it is likely that in the future, terrorism will take different forms that would go beyond our current interpretation of the rationality of terrorists. While these rates have fallen over the past two years, making coverage of terrorism more affordable, it is unclear how they would evolve if a new attack were to take place on U.S. soil. It is also important to keep in mind that these figures are only based on a limited sample of the respondents. The French decree of 31 December 2002, companies with an insurance amount exceeding EUR 20 million make it possible to limit their coverage of terrorist acts to 20% of the property damage guarantee for which a reduction could be granted. The event also showed highly correlated risks at two different levels. First, several routes were immediately affected on 11/11, resulting in catastrophic losses to commercial real estate, business interruptions, workers` compensation, life, health, disability, aircraft hull and general liability lines.
Second, there is now a recognized possibility that several catastrophic attacks could take place simultaneously in different densely populated and industrialized locations. This event therefore confronted the insurance and reinsurance sector with a whole new dimension of damage. The indirect impact on social and economic activities in the United States (notably in New York) and abroad has been even greater. Footnote 4 For a total amount of insurance exceeding €6 million and less than €20 million, the insurer pays a terrorism premium equivalent to 6% of the payment of the commercial life insurance premium paid by the insured; for an amount of insurance exceeding EUR 20 million but less than EUR 50 million, the percentage applied shall be 12 %. If the amount of insurance exceeds €50 million, the insurer pays a premium of 18 per cent of the basic insurance premium (see Figure 2). Finally, the phrase “special risks” (nuclear power plants, captives or real estate of more than 750 million euros) is indicated individually. Footnote 14 It should be noted that these rates are the same regardless of the location or nature of the risk. In the next section, we will discuss the issue of the vs. Risk premiums.
According to this Marsh survey, the median terrorism insurance rate, applied to the total value of insurance during this three-quarters period of 2003, was 0.056 per thousand. Fn. 37 This rate increased to 0.08 per thousand and 0.076 per thousand respectively in the first and second quarters of 2004; practically the same prices as a year ago. This recent increase may not reflect a rise in the price of terrorism coverage itself, but rather a commercial life insurance pricing that has further weakened. Footnote 38 This document also provides some evidence of the application for terrorism insurance in France, Germany and the United States Terrorism coverage is mandatory for all companies only in France, with an obligation for each insurer and mutual insurance company to be reinsured by the GAREAT pool, which could crowd out pure private solutions. On the other hand, the small size of market penetration in the United States. and, in particular in Germany, demonstrates the need to improve the attractiveness of these two systems in order to increase the degree of non-inecration of the coverage of terrorism; Some mandatory elements may be necessary to achieve this objective. If, in the future, coverage remains at the current level, another large-scale attack would certainly have a much greater influence on the social and economic continuity of these two countries.