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Insurers waive terror exclusions after Christchurch attack

New Zealand insurers have waived terrorism exclusions for claims arising from the attack on two Christchurch mosques, as the country prepares for a national remembrance service this week.

“It’s important to insurers to be there for their customers when they need them,” the Insurance Council of New Zealand (ICNZ) said on its Facebook page.

“We’re so pleased to see our members pledging not to enforce terrorism exclusions in the policies of anyone who needs to make a claim as a result of [the] tragic events in Christchurch.”

AA Insurance, a joint venture between Suncorp and the New Zealand Automobile Association, says it has received calls from customers who couldn’t access their vehicles due to a police cordon. They have been supplied with rental cars.

“While our policies exclude acts of terrorism, AA Insurance will be providing cover for claims made following the attack in Christchurch,” CEO Chris Curtin told insuranceNEWS.com.au.

“AA Insurance will continue to review all of our policy exclusions. However, our terrorism clause is an international reinsurer requirement pertaining to catastrophe cover. At this stage our priority is looking after our customers and staff who have been affected at this terrible time.”

IAG and Tower also say they will not apply the exclusions.

A national remembrance service for the 50 people killed and all those affected by the attack will be held on Friday in Christchurch.

Prime Minister Jacinda Ardern has announced that gun laws will change, a royal commission inquiry will examine events leading up to the attack, and the role social media played will also face scrutiny.

ICNZ CEO Tim Grafton says terrorism reinsurance pools, such as those in the UK and Australia, may come up for discussion.

“What has happened now turns the mind to the very real risks that are out there and how they would be responded to given the standard exclusion that exists around acts of war and terrorism,” he told insuranceNEWS.com.au.

“There are some fundamental questions that are likely to be raised by the Government as it contemplates the issues that need to be addressed in future.”