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Political Violence Facultative Reinsurance

Why Choose AIG for Political Violence Reinsurance?

AIG’s political violence product was designed to enable clients to manage the risk posed by the potential outbreak of sabotage, terrorism, riots, strikes, civil commotion, war – international or civil. 

Policies are designed to offer a solution that is highly-specialized and tailored to respond to the priorities of the specific organization and region.

AIG Political Violence Reinsurance Solutions

Terrorism is an ever-present threat that can be difficult to predict and quantify. With losses, costs or damages incurred as a result of terrorist activity typically excluded from a standard commercial insurance policy, an act of terrorism can have a significant impact on a business’ bottom line. Designed to protect against both direct physical damage and resultant business interruption ensuing from a politically, religiously or ideologically motivated violent act, this product provides market-leading cover worldwide and responds to globally nuanced risks. Our sabotage and terrorism product can be tailored in accordance with the needs of each client.

Cover

AIG has the capacity to provide up to $200 million in cover.

 

Features

Benefits
Both certified and non-certified acts of terrorism  Cover triggers apply regardless of whether the local governments have certified the act as an act of terrorism.
Property damage Cover resulting if the insured locations are damaged.
Business interruption Cover as a result of physical damage and resultant loss of profit if an act of terrorism prevents ‘business as usual’ activity.
Expenses Defense costs and claims expenses included within coverage.
Clear and comprehensive wording A clear wording which details exactly what is covered and excluded and that clearly defines triggers for cover.
Tried and tested claims experience AIG has a dedicated claims team which has dealt with many complex and high-profile claims and paid significant sums to our clients over the years.

 

Who is it for?

From Medium to Large, Regional, & Multinational enterprises

AIG provides worldwide cover for SRCC. We can offer protection against property damage and business interruption losses sustained during a committed action by a group of people to disturb the public peace for political purposes or motivations.

Previous events to have triggered SRCC policies include:

  • Riots in Chile (2019/2020) Chilean protests, known in Chile as "Estallido Social", were a series of massive demonstrations and severe riots with greater impact in the main cities in response to the rise of Santiago metro subway fare, resulting in significant 
  • Riots in Mexico (January 2017) following a rise in fuel prices, resulting in looting, property damage, and business interruption.
  • Riots in Haiti (March 2018) during which a hotel and other industrial properties were targeted by local civilians resulting in significant property damage.

Cover

AIG has the capacity to provide up to $200 million in cover.

Features

Benefits
Physical damage Damage to business property as a result of strike or riot action caused by civilian protest.
Business interruption Cover for loss of income resulting from strikes, riots or civil commotion.
Extra expense Cover for additional costs in excess of normal operating expenses that are incurred to continue operations while property is repaired or replaced.
Clear and comprehensive wording A clear wording which details exactly what is covered and excluded and that clearly defines triggers for cover.

 

Who is it for?

From Medium to Large, Regional, & Multinational enterprises

AIG’s Political Violence product was designed to enable clients to manage the risk posed by the potential outbreak of war – international or civil. Policies are designed to offer a solution that is highly specialized and tailored to respond to the priorities of the specific organization. Against the backdrop of an increasingly unpredictable global political stage, political violence is an ever-present risk. Political violence cover would be triggered in the event of an incident such as civil war or international war breaking out. This could have significant impact on an entire country’s economy and require companies operating there to weigh up significant risks both to personnel and property.

Cover

Political violence cover encapsulates all perils from war, both international and civil, through to rebellion, coup d’etat or revolution.

Features

Benefits
Property damage Cover resulting if the business premises are damaged.
Business interruption Cover for loss of profit in the event that political violence prevents ‘business as usual’ or interrupts normal operations.
Clear and comprehensive wording A clear wording which details exactly what is covered and excluded and that clearly defines triggers for cover.

The AIG NBCR product has been designed to respond to the multitude of threats posed by opportunistic use of nuclear, biological, chemical, and radiological agents.It was the first in the market to include third party liability cover, as well as cover for property damage and business interruption.

NBCR perils are considered to have significant ‘footprints’ in respect of the damage and disruption an attack could cause, especially in built-up, metropolitan areas. Research conducted by blast modelling experts has shown NBCR materials have the potential to spread significant distances:

 

Potential terrorist devices

Potential contamination distance from point of attack
10 kt improvised nuclear device 20.30 km
15 kg Sarin gas dispersal 11.27 km

 

Cover

Through the AIG led NBCR consortium we have the capacity to provide coverage including:

  • Property damage
  • Business interruption
  • Third party liability
  • Costs of decontamination / clean up

Features

Benefits
Covers multiple perils In addition to NBCR terrorism, the policy covers NBCR malicious damage and NBCR strikes.
Property damage Cover resulting from the blast from a NBCR attack.
Business interruption Cover as a result of physical damage and contamination from an NBCR attack.
Third party liability Cover for the liability imposed upon a client in respect of bodily injury and property damage.
Decontamination/clean-up costs To reimburse the costs of contamination and clean-up of insured property.
Clear and comprehensive wording A clear wording which details exactly what is covered and excluded and that clearly defines triggers for cover.

 

Who is it for?

From Medium to Large, Regional, & Multinational enterprises

AIG can offer coverage against an organized group of persons whose criminal conduct is promoting and/or controlling illegal drug production and/or trafficking operations for profit or gain.

Who is it for?

For companies available in ilimited countries
AIG offers a solution to different industries demanding this peril.

 

Features

Benefits
Covers multiple perils In addition to organized criminal activity, the policy covers sabotage and terrorism.
Property damage Cover resulting if the business premises are damaged.
Business interruption Cover as a result of physical damage and contamination from an organized criminal activity attack.
Clear and comprehensive wording A clear wording which details exactly what is covered and excluded and that clearly defines triggers for cover.

  • AIG FAC Desk provides Facultative reinsurance solutions for Political Violence Property Damage, Business Interruption, and Third-Party Liability coverage in Latin America. The team serveas PV underwriting center of excellence for AIG offices in Mexico, Puerto Rico, Ecuador, and Brazil.
  • Minimum net premium per our share: USD $7,000.
  • Minimum underwriting info: Detailed scheduleof values, survey report, quote slip, information relevant to security measures, and 5-year loss record.

Preferred Segments

  • Light & Heavy Industries: Manufacturing and Processing
  • Energy: Oil & Petrochemical and Power Generation
  • Infrastructure (Completed Civil Works)
  • Construction Projects
  • Commercial & Residential Real Estate
  • Transportation: Airports & Ports
  • Healthcare: Hospitals and Clinics
  • Hospitality: Hotels & Conference Centers

Coverages

  • Terrorism & Sabotage, Strikes Riots, and/or Civil Commotion & Malicious Damage
  • Third Party Terrorism Liability for S&T / SRCC
  • War on Land (Civil War, Insurrection, Revolution or Rebellion, Mutiny and/or Coup d'état)
  • NBCR -Losses involving Nuclear, Biological, Chemical or Radiological weapons
  • Organized Crime (Mexico only)
  • Political Risk perils are excluded
"In these fluctuating times, not only in politics, recession, and in the wake of the pandemic, we must be prepared for the increase in Terrorist Attacks, Riots and Civil Unrest. Therefore, counting with one of the most experienced specialists in terrorism and political violence solutions, Talbot AIG is best placed to underwrite your client’s business against the multitude of evolving risks that have emerged over the last two decades. This includes protection against property damage and loss of revenue. We are always committed to provide the highest standards of service to our clients."

Andrea Sanchez,AIG FAC Desk Product Leader

andrea.sanchez@aig.com
T: +1 786-777-7853
M: +1 305-794-0398
701 Brickell Avenue 19th Floor, Miami, FL 33131

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