Financial Times FT.com

Providers move to postcode terrorism cover

By Rebecca Knightin Boston

Published: May 29 2007 03:00 | Last updated: May 29 2007 03:00

US life assurers are adopting a more aggressive model to reflect the greater likelihood that certain neighbourhoods will fall victim to terrorist attacks or catastrophes.

The move, in which the industry has implemented the kind of risk management tools previously restricted to property and casualty insurance, means that life assurers could start to chargeclients according to which city or even which neighbourhood they live in.

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