Dutch Terrorism Claims Reinsurance Company (NHT)
The NHT is a reinsurance pool in which insurers, together with the government and reinsurers participate and provides compensation for insurance claims caused by a terrorist attack up to a total amount of EUR 1 billion per year.
The Dutch Terrorism Claims Reinsurance Company (Nederlandse Herverzekeringsmaatschappij voor Terrorismeschaden N.V. (NHT)) was established on 1 July 2003. The terrorist attacks in New York on 11 September 2001 prompted a response from the entire international insurance community. Terrorist attacks had been committed before, but they did not have the impact of the attack in New York. Before that time, Dutch insurers classified terrorism under their Strikes, Riots and Civil Commotion (SRCC) cover, and therefore provided full insurance coverage claims relating to terrorism. However, the financial consequences of terrorist attacks turned out to be so far-reaching that Dutch insurers were no longer willing to provide individual insurance coverage for terrorist events. Since both insurers and the Dutch government felt there should be insurance coverage for such events, another solution was sought.
Ultimately, the decision was made to opt for an arrangement in which insurers, together with the government and reinsurers participate and provides compensation for insurance claims caused by a terrorist attack up to a total amount of EUR 1 billion per year.
Purpose of NHT
- / Maintaining insurance coverage for the risk of damage, losses, injuries and deaths in the Netherlands due to terrorism.
- / Protecting the financial position of insurers, which can be put at risk by unprecedented cumulation.