The global terrorism threat has entered a more complex phase and the (re)insurance industry must adapt, according to a JLT report.

The spread of Islamic extremism has led to a growing number of devastating attacks, the report warns.

Islamic State’s potential access to chemical, biological, radiological and nuclear materials “remains a concern”, and the group is known to be exploring cyber-attack opportunities.

“Clearly all this has implications on the provision of terror (re)insurance cover,” JLT Re Partner for Marine, Energy and Political Risk Paul Upton said.

“The market has been slow to respond and the fallout from several recent attacks has reinforced the need for new products. We are working with a number of market participants to deliver new and innovative products in this area.

“This can be done through the development of holistic solutions or, what is more likely in the short term, a suite of products that plug existing gaps.”