Pool Re publishes its fourth Terrorism Threat & Mitigation Report and gives details of proposed cover for Non-Damage Business Interruption. At the City of London launch, the UK police lead for counter terrorism endorses Pool Re’s actions and commitment to build the UK’s economic resilience.
13 November 2018 (LONDON) – Pool Re, the UK’s terrorism reinsurance pool, has today published its annual Terrorism Threat & Mitigation Report, which focuses on the key terrorist events and developments in 2018, with analysis from leading counter-terrorism experts. Alongside the report, Pool Re published new quantitative research into more than 4,300 global terrorist attacks since 2014, as well as outlining plans for its forthcoming non-damage business interruption cover.
The Threat & Mitigation Report is the culmination of months of analysis of the current and future terrorism risk, enabling Members, the wider insurance community and other stakeholders to better understand it. Contributors to the report include the former senior FBI agent, Ali Soufan, and former Government Security and Intelligence Coordinator, Sir David Omand.
For the first time, Pool Re also published a new data set offering important insights in to global terrorism trends since 2014, when the Islamist group Daesh claimed to have established a caliphate. The database documents fields as wide-ranging as targeting, attack methodology and property damage with analysis of the actions of Islamist groups, right-wing and left-wing extremists, as well as other groups.
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 thereforecommit 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 latest Terrorism Threat & Mitigation Report comes at the end of a highly significant year for the state-backed reinsurer. Pool Re has successfully extended cover to include cyber terrorism, and awaits approval for legislative changes that will allow it to cover non-damage business interruption. Further, the company continues to roll out tools to help businesses better understand
their vulnerability, security best practice, and obtain premium reductions in return for implementing protective security measures.
Speaking at the report launch in the City of London, Assistant Commissioner Neil Basu, the National Lead for UK Counter Terrorism Policing, endorsed Pool Re’s efforts to help mitigate the terrorist threat to the British economy, saying: “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.”
The former Home Secretary Rt Hon Amber Rudd MP also spoke at the report launch, highlighting the importance of public-private partnerships in building resilience to terrorism.
Pool Re today also provided the first details to the assembled Member insurers of the company’s proposals to cover non-damage business interruption (NDBI) once the legislative changes are passed. From that point, Pool Re will be able to cover losses caused when businesses cannot operate because of a wide police cordon even though their premises may not be damaged, as happened in London’s Borough Market in June 2017.
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.
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.
Julian Enoizi Pool Re Chief Executive