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Today sees not only the start of the annual conference and exhibition organised by the British Insurance Brokers’ Association (BIBA) but also the launch of a comprehensive terrorism insurance guide from BIBA and Pool Re.
In collaboration with government departments and other industry experts, the trade body and the UK-backed mutual have introduced what is described as “a highly practical tool for brokers” aimed at enhancing understanding of the risk of terrorism and driving insurance take-up.
The goal is to assist brokers in helping clients make informed decisions about their coverage. Featuring the different types of available terrorism insurance, the guide offers information about Pool Re as well as other providers. It also shares advice on assessing vulnerability and how businesses can build resilience.
“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,” noted BIBA executive director Graeme Trudgill. “We need to increase awareness of the risks of terrorism to businesses and especially SMEs.”
According to BIBA’s announcement, only 130,000 of five million small businesses in the UK are insured with Pool Re. This is despite the evolution of the terror threat to encompass not only bombings but also ‘lone-wolf’ attacks, the use of vehicles as a weapon, and cyber incidents.
“The threat of terrorism is ever present and evolving,” stated Minister of State for Security and Economic Crime Ben Wallace MP. “The aim of Government’s counter-terrorism strategy, CONTEST, is to reduce the risk to the UK, its citizens and interests, so that our people can go freely about their lives with confidence.
“This new guide on terrorism insurance will further our joint aims of improving resilience within UK businesses and its citizens. We know that UK insurance brokers, with their close relations to businesses are well placed to help improve the financial resilience of SMEs in the face of potential attacks.”
The terrorism insurance guide is being sent to BIBA member brokers and is also available from the trade body’s website.
Pool Re chief executive Julian Enoizi, for his part, commented: “We recognise the vital role insurance brokers play in ensuring commercial policyholders obtain the most appropriate insurance cover for their business. This guide highlights the argument that there are few businesses that can afford not to buy terrorism cover.”
Earlier this year the reinsurer invested £10 million into a joint project with the UK National Counter-Terrorism Police HQ and the Home Office’s Joint Security & Resilience Centre, with the amount funding an interactive information sharing platform designed to make organisations more resilient to the risk of terrorism.
