Netherlands built billion-euro terrorism insurance fund since 9/11
In the aftermath of the attacks on the World Trade Center in America in 2001, the Netherlands established an insurance fund that can pay out up to 1 billion euros in the case of an attack, BNR reports.
The so-called Netherlands Reinsurance Company for Terrorism Damage (NHT) is a reinsurance company for policies sold by affiliated insurers in the Netherlands, manager Niek Bos explained to the broadcaster. It pays out if a case meets the definition of terrorism contained in individual policies. That means that if someone is killed in an attack, his survivors will only get money from the NHT if he had a life insurance policy and if the attack is an act of terrorism as defined in that policy. Almost all Dutch insurers participate in the NHT.
So far the NHT had no need to ever pay out. And Bos expects that it will never have to pay out more than 1 billion euros. "Calculations by our experts point out that in the Netherlands it is highly unlikely that a terrorist attack will be committed that exceeds the 1 billion euros", he said to the broadcaster.
The NHT only pays out in the case of actual physical damage caused by an act of terrorism, so bad luck for entrepreneurs who see their income declining due to the continued terror threat in the centers of large cities. But the fund is looking into a solution for this problem as well.
Other European cities have similar funds. The French fund will pay out for the recent attacks in Paris, if it hasn't done so already.