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Analysis: U.S. mass shooting insurance rates jump as incidents rise

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June 29 (Reuters) – The cost of buying insurance protection against mass shootings this year in the US has risen by more than 10% after a series of fatal events, insurers said.

The United States has witnessed 293 mass shootings this year, the report said Archive of violence with weapons what determines them like any event involving the shooting of four or more people other than the attacker. This is compared to 309 for the same period last year, but rose sharply from 240 in 2020.

Demand for such insurance has risen after recent shootings, including the killing of 19 children and two teachers at a Texas elementary school last month, making it the worst shooting at a school in the United States in nearly a decade. read on

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Active shooter insurance typically covers victim trials, building renovations, legal costs, medical expenses, and injury counseling.

“The number of inquiries we’ve received over the last few weeks has definitely grown … we haven’t been as busy as ever,” said Chris Parker, head of Lloyd’s in London’s Department of Political Violence and Defense against Deadly Weapons. beasley insurer (BEZG.L).

Parker said that this year the insurer’s income increased by 25% for its policy on deadly weapons, with the number of requests increased by 30-35%, and rates – by 10-15%, due to the growing number and severity of fire attacks .

According to him, customers are now buying insurance to cover losses of $ 5-10 million compared to $ 1-3 million four years ago.

Insurers can usually pay tens of thousands of dollars for $ 1 million. Beasley’s customers are schools, municipalities, houses of worship, bars and restaurants.

Other buyers include organizers of events such as marathons, rodeos, livestock exhibitions, concerts, July 4th parties and marches of honor. Beasley is one of the biggest players in the space along with other Lloyd’s of London insurers, sources said.

Insurers say violent attacks on hospitals and health facilities have become more frequent when the families of people killed in a pandemic are looking for someone to blame.

Inflation is also seen as an incentive for violent action as the cost of living rises.

Chris Kirby, head of political violence at insurance company Optio, said the demand for insurance usually increases after serious attacks.

“It was after 9/11 and it was the same after the riots and violent civil unrest that have taken place over the last few years in the US and we are seeing the same increase in demand after the recent couple of mass shootings. ».

Church Mutual, a leading insurer of religious organizations in the United States, said there has been an increase in requests for armed assailants and mass shootings, as well as an increase in requests for services.

Church Mutual has demanded greater demand for the “Pull for Cop” device, which allows a customer to pull out a tab, triggering a signal to law enforcement that an armed intruder is happening.

Church Mutual’s clients also include food banks and children’s centers.

‘MORE EXCESSIVE’

The cost of an active insurance policy varies depending on location, security protocols and gun laws of the state of residence, insurers say.

Insurers are already charging schools, medical facilities and retail facilities more for coverage, and prices are generally 5-10% higher than last year, said Tariq Nager, managing director of terrorism and political violence insurance broker Marsh.

However, most organizations do not have insurance against such attacks.

“The increase could become more unbearable if any of the institutions that may have experienced active losses or claims had insurance,” Nagir said.

Insurance buyers said they need to argue hard to keep a cap on betting.

“Overall, you can aim to minimize rate increases through careful and accurate negotiations and reminding underwriters that this is a competitive market,” said Scott Feltham, Compass Group Group Group Insurance Manager. (CPG.L).

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Report by Nur Zainab Hussein from Bangalore; edited by Megan Davis

Our standards: Principles Trust Thomson Reuters.

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