AIG Boosts Limits for Terror as Fear Rises

The video discusses the evolution of terrorism insurance, highlighting the increase in coverage limits from $250 million to $1 billion. It explains the role of Peter Hancock in investing in engineering and reinsurance to better prepare for disasters. The video also addresses the complexities of defining terrorism, especially in cases like cyber attacks, and the government's role in providing a backstop. Finally, it examines the market trends, noting that 60% of US companies have adopted terrorism insurance, though the uptake rate remains stagnant.

What significant change did Peter Hancock implement to improve disaster preparedness?

• Increased marketing efforts

• Invested in engineering and hired over 600 engineers

• Reduced insurance premiums

• Expanded the sales team

Who is responsible for officially declaring an event as a terrorist attack?

• The affected company

• The media

• The government

• The insurance company

What is one of the major challenges in categorizing cyber attacks as terrorism?

• Limited interest from companies

• High cost of coverage

• Difficulty in identifying the attackers

• Lack of insurance policies

What percentage of US companies have adopted terrorism insurance?

• 60%

• 75%

• 45%

• 30%

Why are multinational companies concerned about terrorism insurance?

• They find the insurance too expensive

• They have not experienced any terrorist threats

• They are worried about their operations abroad

• They believe the coverage is insufficient