Interest in active assault insurance increases as fatal shootings increase

Insurance companies that offer active coverage for attackers have submitted quotes and are closing more deals as the number of incidents increases.

With the recent high-profile shootings in the United States, more organizations are seeking insurance coverage against potential liability and property damage related to the fatal incidents and other related costs, sources said.

“It’s never been more difficult,” said Chris Parker, London-based head of terrorism and lethal weapons protection for Beazley. With the number of shootings in the U.S. increasing each year, “there’s more interest in the product,” with both inquiries and commitment, he said.

Beazley PLC deployed a four-person team to the US earlier this year to market its active stroke insurance product and inform potential policyholders and brokers.

Data from the Gun Violence Archive, a website that tracks gun shootings and deaths, shows that mass shooting incidents roughly doubled between 201

There is “absolutely” more interest in this coverage, said Morgan Shrubb, New York-based head of terrorism for Axa XL, a unit of Axa SA. Her team now offers active attacker coverage on all its terrorism insurance quotes, and take-up has doubled this year, she said.

Tim Strong, director of crisis management in London for Aspen Insurance Holdings Ltd., said inquiries and filings typically increase by about 15% to 20% after an event, “but given the even frequency of events in the U.S., the number of filings has been quite constant.”

The types of organizations looking at active attackers are also growing. When the coverage was first offered, many of the buyers were schools, municipalities and other public bodies, sources said. Recently, interest has grown in the corporate sector, says Jo Holliday, president and global head of crisis management for Willis Towers Watson PLC in London.

“Particularly in the last six months, there has been a real increase and difference in the types of clients who are asking about and tying the coverage,” she said.

Beazley’s Mr. Parker said there is no industry category where an organization does not have tied coverage.

Historically, municipalities and schools had been buyers of coverage from Axa XL, but coverage is increasingly being purchased by private companies, Shrubb said. Those buying active seizure insurance include apartment owners, condominium associations, hotels, retailers and entertainment companies, she said.

In addition to the number and types of organizations looking at and purchasing active attacker coverage, the limits purchased are also increasing, sources say.

Purchased limits in the $1 million to $2 million range were available when Beazley coverage was introduced in 2016, but the average limit has risen to between $3 million and $5 million, Parker said. The largest limit available — which covers nearly every insurer in the market — is $100 million, which Beazley writes for two policyholders, he said.

Aspen Insurance offers a maximum limit of $25 million, and the average limit purchased is $7.8 million, Mr. Strong.

The risk management community is also showing growing concern and awareness of the issue.

“As risk managers, I think it’s important for us to raise these topics with our managers,” said Kristin Peed, corporate director of risk management at Cleveland-based CBIZ Inc. and a board member of the Risk & Insurance Management Society Inc.

“We need to have the proper training for our employees to know how to react if they are faced with this,” she said. “We can’t ignore what’s happening because the events are happening it feels like on a more regular basis, so we have to look at and address the risks.”

RIMS has an active shooter report and is increasingly incorporating active shooter programming into its events and educational efforts, according to a spokesman for the organization.