Lack of terror insurance cover is worrying Australia’s risk managers, according to ARIMA President Bruce Ferguson. A survey of members has found that 48% of ARIMA members have had terrorism excluded from policies, and 64% have been told the exclusions will be applied on renewal.

The underwriters’ definitions aren’t helping, either. He predicted a legal challenge to an underwriter’s exclusion of terrorism cover will not be far off.

Mr Ferguson said terrorism is now “virtually impossible” to manage as a risk, and the Federal Government should be an insurer of last resort. “Organisations need a financial safety net, and the only logical means of providing it is through a government-sponsored fund.”