Incidents and calamities change in nature and scope. Insurers have knowledge, procedures and instruments to act after an emergency, disaster or terrorist attack. They can remove financial risks and arrange damage repairs.
Everydisaster is different. This makes unambiguity about coverage issues complex. But it is important to have clarity about the insurability of (large-scale) calamities and also about the decision-making and communication about coverage and claims settlement. Insurers therefore have two step-by-step plans to communicate and take action in the event of emergencies as quickly and adequately as possible:
For (goods) policies taken out under Dutch law, the war risk can be terminated prematurely with a notice period of seven days. A period of two months applies to the strikers' risk (for the description of what falls under war and strikers' risk, see clause M3 of the VNAB and BW 7:940). For (goods) policies taken out under English law, both the war risk and the strikers' risk can be terminated prematurely with a notice period of seven days. This is regulated by clauses.
Since March 1, Israel and the United States have been carrying out attacks on Iran. Iranian missile strikes in the region have also been reported, including in Iraq, Qatar, Kuwait, the United Arab Emirates and Bahrain.
The situation in Ukraine is still very critical and the impact on trade flows is great. The country has been designated as a war zone, just like Russia, Belarus and large parts of the Black Sea. With all exclusions in insurance policies that (possibly) apply. The sanctions issued have an effect on insured persons and on how insurers should deal with laws and regulations.
Molest is damage that occurs in conflict situations. According to the Financial Supervision Act (Wft), non-life insurers with their registered office in the Netherlands are not allowed to insure claims caused by or arising from major acts of violence. Damage caused by minor acts of war is covered in many cases.
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Great molestation
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Small molestation
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Insurers who are allowed to insure acts of violence
There is a legal exception for mutual insurers, but the prohibition described above does not apply to them. This specifically concerns mutual insurance companies with their registered office in the Netherlands and companies on a mutual basis with their registered office outside the Netherlands that only take out non-life insurance for damage that may be caused by, or arise from, armed conflict, civil war, insurrection, internal disturbances, riots and mutiny. In marine, transport, aviation and travel insurance, it is also allowed to insure molestation risks with the generally customary molestation clauses. This is allowed as long as the Dutch Central Bank (DNB) has not raised any objections to it.
A terrorist attack can cause both material and immaterial damage. Although most attacks are committed by individuals or small groups, the extent of damage after a terrorist attack could be so great that an insurer cannot bear it on its own. That is why insurers set up the Nederlandse Herverzekeringsmaatschappij voor Terrorisme (NHT) in 2003, in which one billion euros is made available every year. Insurers who pay out damage as a result of a disaster can rely on this. In this way, the risk of terrorism remains insurable.
Unfortunately, geopolitical tensions are currently rising and global stability and security are under pressure. On 6 December 2024, the government underlined the importance of strengthening society's resilience to military and hybrid threats.
Read more about resillience in the face of military and hybrid threats.
