Following the global withdrawal of terrorism cover, expect to see plenty of new niche products providing specific cover coming on the market. The international health and accident division of Willis Group Holdings has quickly developed a range of products that it says will assist organisations in securing war risks and malicious risk coverage. 

The policy is designed to cover personnel against death or disability by such activities as war, hostilities, terrorism, sabotage and riots, and will cover these activities whether there is war declared or not. 

American International Group’s member companies will lead a placement on behalf of the co-insurance market for aviation war risk and hijacking liability coverage. This move will offer US airlines almost $2 billion in liability coverage relating to aviation war risk and hijacking. AIG Chairman Maurice Greenberg said the policies “bridge the gap between the limit currently available in the market and what the airlines need today”.