Germany announced on Friday it was extending terror insurance guarantees put in place after the September 11 attacks by two years until the end of 2007 following Thursday's deadly blasts in London. "The terrorist attacks in London yesterday have shown how important a state guarantee for insurance against terror risks still is four years after the September 11, 2001 attacks," the Finance Ministry said in a statement.
The guarantees were first introduced when commercial insurers effectively withdrew third-party liability insurance for acts of war and terrorism following the September 11 attacks on the World Trade Center and the Pentagon.
The current guarantees back insurance provided by Extremus Versicherungs AG, a special vehicle set up by insurers to cover damage of more than 25 million euros ($30 million) to property or business operations in Germany through acts of terrorism.
The current guarantee expires on December 31, 2005