Pool Re to extend cyber terrorism cover to physical damage
Written by staff reporter
Pool Re has this morning announced plans to extend its cover to include material damage and direct business interruption caused by acts of terrorism using a cyber trigger. The cover, effective from April 2018, which will exclude intangible assets, will be offered as standard to all policyholders purchasing terrorism insurance from Pool Re members.
This initiative is the culmination of more than two years of work. The coverage extension is based upon a research study which was commissioned from the Centre for Risk Studies at University of Cambridge Judge Business School, to further Pool Re’s understanding of the nature of the cyber terrorism threat.
Chief executive Julian Enoizi, said Pool Re said today’s announcement is an effort to future proof the Scheme and to close a potential gap in coverage before it became apparent.
“The threat from a cyber attack is evident and businesses have become increasingly concerned about the extensive repercussions these types of attacks could have on them," he said. "This was a clear gap in our coverage which left businesses potentially exposed. After rigorous analysis, we determined that we can close this gap. It is a pivotal moment for Pool Re which establishes a new standard for terrorism cover and places the UK at the forefront of nations reinforcing their economies against emerging risks. It is also an indication of what can be achieved through cross-industry, academic and governmental collaboration. We will continue to research and evaluate other emerging terror threats as they become evident.”
Simon Ruffle, Director of Research and Innovation at the Cambridge Centre for Risk Studies, said the study for Pool Re was very timely given the evolving nature of cyber terrorism. “The Centre has applied an academic approach to modern business, enabling a deep analysis of current geopolitics and technology in order to illuminate the shape of an emerging threat to the UK economy,” he said. “The cyber terrorism scenarios we examined provide insight into what types of attacks might be possible in the next few years that could impact Pool Re’s portfolio.”