TRIP (Belgium)

Belgium dealt with terrorism through a statute before dealing with it through a company. The law of April 1, 2007 on insurance against damage caused by terrorism created TRIP, a nonprofit association joined by the insurers that cover the risk in Belgium. The mechanism rests on a global annual cap, about one billion euros at the outset and indexed since, stacked in layers: member insurers first, according to their market share, then reinsurance bought by the pool, and the government last. Above the cap, nobody pays. A committee decides whether an event is an act of terrorism within the meaning of the law, then sets a provisional indemnity percentage that insurers apply to each claim until the total cost is known. That percentage is what sets the system apart: it protects the cap by rationing first and topping up later, which pushes part of the settlement out in time. On March 22, 2016, the attacks at Zaventem airport and Maelbeek metro station killed 32 people. The committee recognized the events as terrorism and the pool responded, in property and personal lines alike, since the 2007 law requires terrorism cover in accident, health and life insurance. The cost stayed far below the cap. For an international program underwriter, the practical question is how a Belgian local policy that refers to TRIP fits with a master program that excludes terrorism or places it in political violence.