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Mar 2019

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Hong Kong: Berkshire Hathaway is first to offer EC terrorism coverage to customers directly

Source: Asia Insurance Review | Jan 2019

Berkshire Hathaway Specialty Insurance has withdrawn from the Hong Kong Employees’ Compensation (EC) Terrorism Pool from 1 December, and is the first insurer in Hong Kong to provide EC terrorism coverage to customers directly.
 
This decision benefits all BHSI’s new and existing EC customers for policies incepting or renewing on or after 
1 December 2018, the company said in a statement. 
 
The EC terrorism pool was established to provide terrorism cover for Hong Kong EC policyholders after the 11 September terror events when capacity receded in the international markets. Whilst participation is voluntary, the pool provides a maximum limit of HK$10bn ($1.3bn) which until now was shared among all EC policyholders for all terrorism claims on a first come, first served basis. Insurers participating in the pool must charge their EC policyholders a 3% levy on policy premiums which is then remitted to the Hong Kong government.
 
BHSI’s customers are no longer subject to the 3% levy on their EC policy premiums; BHSI policyholders no longer need to share a limit with all the other EC policyholders in Hong Kong; and payments for terrorism claims are no longer contingent upon payment or reimbursement from the pool. A 
 
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