Does Canada Need A Terrorism Risk Insurance Scheme?

Introduction

In October 2014 two allegedly Islamic State-inspired Canadians killed two members of the Canadian forces in separate incidents in Saint-Jean-sur-Richelieu, Quebec and Ottawa, Ontario. One of the individuals, an armed assailant, subsequently stormed the Canadian federal Parliament Buildings before being shot dead.

In AON's annual Terrorism and Political Violence Risk Map and related guide for 2015, Canada (and eight other western countries) were rated at 'increased risk'. Nevertheless, Canada's country risk level was rated 'low'. France's country risk level was rated as 'medium' by the same publication. Presumably, the recent horrific attacks in Paris, Mali and elsewhere will have a further effect on the perceived level of terrorism risk in Europe and various other countries, including perhaps Canada. However, it is not yet clear whether there may be a spillover effect on the pricing/availability of terrorism risk insurance in Canada and, if so,