Treasury is seeking submissions related to the Triennial review of the Terrorism Insurance Scheme.
This consultation seeks stakeholder views on issues outlined in the Terms of Reference, particularly with respect to the following:
- Whether the risk of cyber terrorism causing physical property damage should be included in the scheme by removing the scheme regulations for computer crime and over-riding policy exclusions for cyber terrorism; and
- The extent of coverage available for terrorism incidents causing harm to people including armed assault.
The Scheme, established by the Terrorism Insurance Act 2003, was intended to operate in the absence of commercially available terrorism insurance on reasonable terms. As such, the Act requires a review of the Scheme every three years, to determine whether the market failure continues to justify the Government’s market intervention. The last review was in December 2015.
Previous reviews have recommended that the scheme continue in operation, however, the 2015 review noted that the availability and pricing of private sector terrorism insurance has slowly improved over time.