Corporate risk managers are unhappy at being ignored in the present consultations over a terrorism insurance scheme. Peak body ARIMA says the major report being used as a base for the discussions, which was compiled by Trowbridge Consulting, concentrated on the views of insurers to the detriment of insurance-buyers like corporate risk managers.

As reported last week, the proposed terrorism risk insurance scheme pool will be built up over three years by a $300 million levy on property, business interruption and public liability premiums.

ARIMA President Bruce Ferguson said industry consultations were held by Trowbridge on August 14 and 15, with a deadline on written submissions of August 20. An ARIMA appeal for an extension of time was refused.

“Unfortunately, but inevitably, the proposal from Trowbridge means insureds will pay what is virtually a levy on premiums for terrorism cover, even if they don’t want it,” Mr Ferguson said. “The Trowbridge report centres on the needs of the insurance industry, rather than the needs of those exposed to the risk and those who are expected to fund the proposed arrangements.”