BIBA and Pool Re produce broker guide to terrorism insurance
Written by Deborah Ritchie
A new guide to terrorism insurance has been launched by the British Insurance Brokers’ Association and Pool Re, specifically designed to support brokers’ understanding of this risk class, and ultimately, to increase take-up in this class.
Terrorism threat vectors have changed dramatically since the IRA attacks of 1993 that led to the establishment of the pool, with the weaponising of vehicles, lone-wolf attacks more prevalent today, and the threat of chemical and biological and cyber attacks on the rise. The nature of today's threat means terrorism risk is no longer just a problem for organisations in high-profile areas, towns or buildings.
Despite this now prolific risk, take up of cover is low; less than 3% of SMEs buy any terrorism cover at all. BIBA's new guide aims to enhance understanding of this risk - for brokers and their clients.
Executive director at BIBA, Graeme Trudgill said this new guide plays an important role in increasing the resilience of UK organisations, and indeed the whole economy.
“Now that legislation has enabled Pool Re to extend its remit and expand its cover options to include cyber terrorism there is more capacity for terrorism insurance. We need to increase awareness of the risks of terrorism to businesses and especially SMEs.
Businesses whose trading is affected by an incident can turn to insurance to help them get back on their feet. This guide will play an important part in helping insurance brokers to help companies understand the benefits of terrorism insurance and, in turn, increase the resilience of UK businesses, strengthening the economy.”
The guide also describes how the Counter-Terrorism and Border Security Act has allowed Pool Re to expand its remit to provide cover for NDBI, closing a significant gap, and giving confidence that businesses can continue to trade and provide services within their communities.
Businesses and brokers should also be aware that other types of terrorism cover are available, where the insured can be selective about the locations they are looking to cover.
"This usually results in a premium saving and should assist in the take up of terrorism insurance," comments terrorism underwriter at Fiducia, David Heeney.