¡¡¡¡GENEVA, April 8 (Xinhuanet) -- Major Swiss insurance and reinsurance groups are involved in a venture of forming a new insurance company that will offer insurance against terrorism, according to a report by the Swiss Radio International on Monday.

¡¡¡¡The company, called Special Risk Insurance and Reinsurance Luxembourg (SRIR), will provide cover for physical loss or damage to property arising directly from acts of terrorism, said the report.

¡¡¡¡The investors believe that SRIR will help address the shortageof terrorism insurance available in the commercial market following the terrorist attacks in the United States.

¡¡¡¡"The events of September 11 attacks showed losses of an unprecedented magnitude in this area and puts a whole different dimension in the area of terror-related risk," Claudia Stulten, a spokeswoman for Zurich Financial Services, said. "But now there isa need for special coverage."

¡¡¡¡SRIR has been jointly set up by Zurich Financial Services, XL Capital LTD. of Bermuda, Swiss Re, Hannover Re and Germany's Allianz, which each hold stakes of 18.2 percent, while SCOR SA of France owns 9.1 percent.

¡¡¡¡"Given the dimension of terror risks, it was only by joining forces with several investors that we could offer this product," Stulten explained. "It was important for the partners to create a separate entity, to operate as a fully independent company in the market place." Meanwhile, SRIR plans to start underwriting business during the second quarter of this year.

¡¡¡¡SRIR's underwriting teams will be based in Luxembourg and it will be mainly operational in Europe. It will cover commercial andindustrial clients for physical loss to insured property, but not life, for a pre-determined coverage amount, limited to 275 millionEuros. Enditem