Six European insurers have banded together to insure property on the continent against terrorist attack. Special Risk Insurance and Reinsurance Luxembourg SA will provide limited coverage for physical loss or damage to insured properties. That means such risks as BI are not included. The company will be owned by Zurich, XL Capital, Swiss Re, Scor Re, Hannover Re and Allianz.

But governments will still have to shoulder the major terrorist attack risk burden. A spokesman for the new company said industry-based solutions “remain complementary to state-sponsored schemes established prior to and since September 11, and are not meant to replace them”.