S. mass shooting insurance rates jump as incidents rise Reuters - The cost to buy insurance protection against mass shootings has gone up more than 10% in the United States this year after a string of deadly events, insurers said.
The United States witnessed 293 mass shootings this year, according to a report by the Gun Violence Archive as any event involving the shooting of four or more people other than the assailant. That compares to 309 in the same period last year, but is up from 240 in 2020.
Demand for such insurance has risen after recent shootings, including the murder of 19 children and two teachers at a Texas elementary school last month, the United States' worst school shooting in nearly a decade.
Chris Parker, Head of Political Violence and Deadly Weapons Protection at Lloyd's of London insurer Beazley, said the number of inquiries we've received over the last few weeks has gone up and we haven't been as busy as this ever before.
Parker said that the insurer had seen a 25% jump in revenue for its deadly weapon policy this year, with a 30 -- 35% jump in inquiries and a 10% increase in rates, due to the rising number and severity of gun attacks.
He said clients were buying insurance to cover themselves for $5 - 10 million in losses, compared to $1 - 3 million four years ago.
The policyholders can pay tens of thousands of dollars for $1 million in coverage. Beazley's clients include schools, municipalities, houses of worship, bars and restaurants.
Other buyers include events such as Pride marches, Rodeos, Livestock Shows, concerts, Fourth of July parties and Marathons. Beazley is one of the biggest players in the space, along with other Lloyd's of London insurers, sources said.
There has been an increase in violent attacks at hospitals and healthcare institutions as families of people who lost their lives to the epidemic look for someone to blame, insurers said.
Inflation is seen as a driver of violent acts as the cost of living increases.
According to Chris Kirby, head of political violence coverage at insurer Optio, demand for insurance typically rises after major attacks.
This was the case post 9-11, and the same after the rioting and violent civil disturbances that took place over the last few years in the U.S. We are seeing the same increase in demand after the recent spate of mass shootings. Church Mutual, a leading insurer of religious organizations in the United States, said that it had seen a 10 -- 15% increase in inquiries around armed intruder and mass shootings and an increase in requests for services.
Church Mutual has seen more demand for its Pull for police device, which allows a customer to pull a tab, triggering a signal to law enforcement that there's an armed intruder event.
The cost of active shooter insurance policies varies based on location, safety protocols and the gun laws of the state of residence, according to insurers.
Insurers are already charging schools, healthcare institutions and retail establishments more for cover and prices in general are 5% to 10% higher than last year, said Tarique Nageer, managing director of terrorism and political violence at insurance broker Marsh.
The majority of organizations do not have insurance against such attacks.
The increase could get more exorbitant if all institutions that have had experiences of active shooter losses or claims had insurance, Nageer said.
Insurance buyers said they needed to argue hard to keep a lid on rates.
Scott Feltham, group insurance manager for catering company Compass said that they should aim to minimize rate increases through thorough and pointed negotiations and reminding underwriters that this is a competitive market.