Pool Re, the UK government and industry backed terrorism reinsurance scheme, is ploughing ahead with its plans to add property coverage for terror-related cyber events to its offering.
According to its Chief Executive Officer (CEO), Julian Enoizi who spoke with Reuters last week, the coverage arrangements will include incentives to become more cyber-resilient.
For Pool Re clients who choose to add the terror-related cyber coverage to their agreements, there will be incentives to implement UK government approved cyber security policies which could lead to premium discounts.
It’s hoped that this will offset some of the additional cost of adding cyber risk coverage to the policies Pool Re already provides, ultimately increasing the uptake for this additional coverage.
Enoizi said that after discussions with government and industry stakeholders Pool Re hopes to start offering the cyber coverage in the coming months.
Enoizi said that Pool Re sees property coverage as a gap in current cyber insurance or reinsurance offerings.
The cyber risk insurance market is very focused on loss of personal and customer data, with insurance policies largely designed to help companies recover and pay for these kinds of cyber attacks. But risks in property, industrial and other systems could result in far more catastrophic outcomes, as the cyber threat evolves.
By encouraging resilience through the offer of premium discounts, Pool Re’s clients will be able to add the cyber cover at a lower price, while also enhancing their ability to avoid making claims.
That’s good for Pool Re too, helping it to add a diversifying peril to its portfolio, while reducing the risk assumed.
Private market initiatives are also actively looking at the cyber property insurance gap, which is seen as a real opportunity to grow into a coverage area that traditional companies have, to date, largely ignored as cyber risk insurance evolved.