Pool Re, the UK’s terrorism reinsurance pool, has published its 2018 Terrorism Threat and Mitigation Report. It covers terrorist events and developments in 2018, in the UK for example; with analysis of counter-terrorism, whether in case of Islamist groups, right-wing and left-wing extremists or others. Also at a launch in London, Pool Re published new quantitative research into more than 4,300 global terrorist attacks since 2014, and outlined plans for non-damage business interruption cover.
Julian Enoizi, Pool Re Chief Executive, said: “This statistical capability will strengthen Pool Re’s actuarial and modelling work, ultimately enabling our Members and reinsurers to feel more comfortable with terrorism risk over time, and therefore commit more of their own capital. In turn, this promotes the economic resilience of UK Plc, since awareness is raised and take-up levels increase.”
The state-backed reinsurer (in full, Pool Reinsurance Company Limited) in 2018 has extended cover to include cyber terrorism, and awaits approval for changes to UK law that will allow it to cover non-damage business interruption. If approved in Parliament, the new NDBI cover will include loss of trade caused by being unable to access, exit or use the insured’s premises because of the actions of the police or another statutory authority when responding to terrorist activity. It will also provide cover for loss of business as a result of a downturn in customer footfall at insured businesses within a mile of a terrorist incident.
Julian Enoizi said: “It’s a testament to the effectiveness of the relationship between government and the private sector that we are about to close a significant terrorism insurance gap for UK business. This gives confidence to the customers in the communities they serve that in the event of a terrorist attack, services can and will continue. All commercial property and business owners will benefit from the proposed cover, particularly small- and medium-sized businesses which are particularly vulnerable to business interruption losses following attacks, as was seen last year in both Manchester and London.”
Pool Re continues to develop tools to help businesses better understand their vulnerability, security best practice, and obtain premium reductions in return for putting in physical protective security measures.
Speaking at the report launch, Met Assistant Commissioner Neil Basu, the National Lead for UK Counter Terrorism Policing, endorsed Pool Re. He said: “Pool Re is providing a huge opportunity to its members to assess, identify and mitigate their security weaknesses – this can only benefit society as a whole by improving the overall level of security, and provides a potential financial incentive to the individual business through the reduction of their insurance premium. I wholeheartedly support Pool Re’s commitment in this area.”
Former Home Secretary Amber Rudd also spoke. Visit https://www.poolre.co.uk/research/reports/.
