Summer 2013

TERRORISMWAR &

The Lockton War & Terrorism division offers dedicated and specialist services encompassing

all aspects of War, Terrorism and Political Violence in the London and Worldwide marketplace.

Coverage is available for Multi-National Programmes, Single Territory Placements and Single

Location Placements as follows:

• Sabotage and Terrorism

• Riots, Strikes, Civil Commotion and Malicious Damage

• Political Violence including Coup D’Etat, Rebellion, War and Civil War

• Terrorism Construction (up to 48 months) including Delay in Start Up

• Third Party Liability and Employee Liability

• Loss of Attraction and Event Cancellation.

Following the emergence of some considerable new capacity being released into the terrorism market from insurers XL, ANV and IGI, and an ever increasing appetite for this ‘profitable‘ line of insurance, the Political Violence market is seeing a significant softening of rates once again. With in excess of $2.6bn of worldwide terrorism capacity available, and an increase in the desire for market share between syndicates and insurance companies alike, a downward rate drift is having a negative effect on prices once more in most areas of the globe.

The situation in Syria continues to deteriorate with the news that chemical weapons are now being used by both government and rebel forces alike in a bid to assert geographical and military dominance. More notably however, in the battle to gain overall control in this bitter civil war which has now entered its third year, was the taking of the strategic city of Qussair by Government forces at the beginning of June after 18 months of fighting. The battle lines in Qussair and indeed across much of Syria are harshly drawn along political and increasingly sectarian lines, with even more definition now that as many as 5,000 Hezbollah fighters from neighbouring Lebanon have publicly joined forces with Syrian Government troops. Qussair made headlines across much of the world recently as a small city at a strategic crossroads, which became a prize in a bitter battle in this bloody war.

With other countries now more openly involved in the ongoing conflict, it has been reported that the Obama administration could approve lethal aid for Syrian rebel forces, possibly with a move to sending in US air power to enforce a no-fly zone over the civil war-torn nation.

Notwithstanding these recent high level White House discussions, with Obama leaning towards signing off on sending weapons and air power to vetted moderate units, the death toll continues to rise, with 80,000 people now reported dead, and over 1.5 million Syrian people displaced.

With the Syrian army planning an assault on Aleppo to reclaim the city from rebel forces, a double bombing in Damascus on Tuesday 11th June which killed 14 people and injured dozens of others, came as a sombre reminder that the major cities within this ravaged country remain firmly in the grip of civil war.

Iraq is currently suffering from almost daily attacks leading to fears of a return to the worst levels of sectarian violence. Car bombs in Judaida al-Shat, Taji, Mosul and Buqaba to the north of Baghdad, and several suicide bombers in Sunni Muslim dominated areas last month culminated in it being the bloodiest in Iraq since June 2008, with 1,045 Iraqi civilians and security officials killed, according to reports from the UN.

David ChealesHead of War & TerrorismT: 020 7933 2291E: david.cheales@uk.lockton.com

Brendan ScofieldPartnerT: 020 7933 2292E: brendan.scofield@uk.lockton.com

Enhancements AvailableUSD 50m Hiscox syndicate line slip facilityDeletion of the Incorrect Declaration PenaltyDebris Removal and Professional Fees (without sublimit) “Per Occurrence” Limits or Multiple Reinstatements.

Contingent Business Interruption: Ingress/Egress; Failure of Public Utilities; Interdependency Coverage; Customers and Suppliers; Civil /Military AuthorityIncreased Cost of Working Sub-limitsBy-law extension improved to cover cost of site clearance.

The MarketWe have access to in excess of $2.45billion of coverage for any single risk, with little geographical exclusion. Capacity is sought from Lloyd’s syndicates and company markets based in London, USA, Bermuda, Europe, Scandinavia and the Middle East.

Key Company Markets• AXIS• Lancashire• Chartis• Montpelier re• QBE• Inter Hannover• Torus• ACE• IGI.

Key Lloyd’s Markets• Hiscox• Catlin• Hardy• Amlin• Talbot• Liberty• Beazley• Chaucer• Pembroke• Brit• Atrium• Ascot• XL• ANV.

Following the 10th day of unrest in Turkey, the country’s defiant Prime Minister Recep Tayyip Erdogan informed his supporters that his patience “has a limit”, as police fired tear gas and jets of water at demonstrators in Taksim Square in the unremitting remonstrations against his decade-long rule. “Those who do not respect this nation’s party in power will pay a price”, he stated.

The nationwide unrest involving as many as 10,000 people at a time first erupted on May 31st after a rigid police crackdown on a campaign to save Istanbul’s Gezi Park from demolition. The trouble escalated into a mass outpouring of anger against Erdogan and his party which is seen to becoming increasingly more authoritarian. The Prime Minister has faced international condemnation for his handling of the recent unrest. Erdogan is due to meet the organisers of the ongoing protests on Wednesday 12th June to “listen to their thoughts”, but added that illegal protests would not be allowed.

In Afghanistan on 10th June seven Taliban militants were killed after they launched a grenade and gun attack on Kabul airport. There were no reported civilian casualties after two suicide bombers blew themselves up, and five others were shot dead in fighting with elite Afghan troops. The assault did not breach the airport complex, but all flights were cancelled or re-routed for several hours. This incident follows an attack on 8th June which left two soldiers and a civilian dead and three others wounded, taking place in an area where the al-Qaeda linked Haqqani network is known to operate.

A division of Lockton Companies LLPAuthorised and regulated by the Financial Conduct Authority. A Lloyd’s brokerRegistered in England & Wales at The St Botolph Building, 138 Houndsditch,

London, EC3A 7AG, Company No. OC353198. LLP 557h.

www.lockton.com

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