Japan’s non-life insurers have turned their backs on plans to set up a terrorism fund, a move that could disadvantage Japanese insurers compared to their European and US competitors. The announcement followed the industry’s decision that the chances of a “September 11” taking place in Japan are extremely remote. Industry analysts believe that while this attitude may be realistic, it will deter investors. 

Japanese insurers have set limits on terror coverage for buildings at around $15.5 million.