Westminster, Borough Market, Parsons Green, Manchester Arena… the list of terrorist attacks in the UK during 2017 has been both shocking and disturbing. For insurers and brokers, however, the series of attacks has at least given them the opportunity to emphasise to their clients how important appropriate cover is – and now that cover looks to become significantly cheaper.
Pool Re, the government-backed insurer, has outlined plans to slash its prices with businesses outside the capital expected to benefit the most as London is deemed a higher risk than most of the country.
According to a report in The Financial Times, Pool Re will halve the price it charges to insurers on certain levels of business cover – but then the emphasis will fall on the insurance companies themselves to actually pass on the benefits.
“We’ve changed the way we look at SME pricing and we’ve been able to make a significant reduction in the premium,” Julian Enoizi, chief executive of Pool Re told The Financial Times. “We’re trying to make the price so much lower that it becomes a no-brainer.”
Enoizi outlined that the new prices would be more appropriate for the risks facing small companies.
However, problems still remain with the cover overall with Pool Re only able to pay out to businesses that suffer physical damage – many businesses suffer losses in other ways, such as due to business interruption.
Related stories:
Where brokers step in amid severe threat level
Pool Re working on robust terrorism insurance model
