British insurer Aviva has added terrorism cover as standard to selected digitally traded commercial products for eligible small and medium-sized enterprise (SME) customers in Great Britain, with the insurer citing the recent scheme launched by the UK’s terrorism reinsurer Pool Re as helping them expand coverage in this way.
The move, effective from 24 August, makes Aviva the first insurer to introduce this type of automatic protection, the firm highlights.
It follows the launch of Pool Re’s SME Incentive Scheme, an initiative designed to make terrorism protection more accessible and simplify broker-client conversations for SMEs.
Through the scheme, reinsurance rates have been reduced by up to 90% for most policies, allowing Aviva to bundle the protection directly into core premiums with minimal cost impact.
The new terrorism cover will apply to risks in Great Britain where property/material damage is selected and the combined property damage and business interruption sum insured is below £10 million.
It will be included as part of the standard proposition for policies, which include Aviva’s digitally traded Commercial Combined, Office & Surgery, Property Owners, Shop & Salon and Computers products, with Contractors Combined to follow soon.
The cover will no longer be an optional add-on for those products, and existing business will be updated at renewal.
The cost of the cover will be integrated into the overall product premium. Terrorism reinsurance rates available through the scheme have been reduced by up to 90% for the majority of policies, helping minimise the cost of including the cover as part of the overall premium.
Dave Martin, Managing Director, UK Commercial and Chief Distribution Officer, Aviva, said: “Many SMEs depend on their premises, equipment and stock to keep their businesses running, yet terrorism cover remains one of the least purchased commercial insurance protections.
“Too often, businesses are exposed without realising it. While they may not be the intended target of an attack, the impact of damage, disruption or being unable to access their premises can be significant.”
Martin added: “As the first insurer to include terrorism cover as standard on digitally traded products, we’re helping more customers access protection that they may otherwise go without. Pool Re’s new scheme has enabled us to do that in a way that is straightforward for brokers and their clients, while keeping additional costs to a minimum.
“This is another example of how we’re evolving our digital proposition to make it easier for brokers to place business with Aviva and to help customers access the cover they need with greater confidence.”
Tom Clementi, CEO, Pool Re, said: “I am delighted that Aviva is making use of Pool Re’s new SME Incentive Scheme which is designed to encourage insurers to reintegrate terrorism cover as standard into commercial property policies for SME customers. This move by Aviva will help to close the SME protection gap and thereby enhance the economic resilience of the UK economy to the threat of terrorism at a time of significant geopolitical uncertainty.
“It also aligns with Pool Re’s mandate from Government which has always been to make terrorism cover available and affordable for all businesses across the country, both large and small. I am grateful to Aviva for their strong collaboration on this initiative and look forward to other Pool Re Members joining the Scheme in the months to come.”
