Overview

In the aftermath of recent anti-Government demonstrations in Thailand, attention has once again focused on the extent to which the financial costs of the protests will ultimately be borne by the (re)insurance market and, in particular, by political violence and terrorism (re)insurers.

Businesses in Bangkok, and elsewhere in Thailand, are counting the financial costs of the recent protests, with estimated costs of property damage alone being in the region of US$1.2 billion. It has also become evident that relatively few affected businesses had purchased cover for terrorism and political violence perils, which are typically excluded from all risks cover unless covered by a specific buy back. In light of this, examining the nature of the disturbances and considering the meaning of the terms employed in individual policies, in order to classify the events as falling within covered or excluded perils, is particularly important.

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