Pool Re has examined the current state of terrorist threat in the UK in a 12-page report that outlines the ways to improve risk mitigation and resilience across the public and private sectors.
The report acknowledges the importance of working closely with the private sector, including the insurance and reinsurance sector, as laid out in the UK government’s CONTEST strategy for countering terrorism.
“As the barriers for individuals and groups to acquiring material and knowledge to undertake terrorist attacks continue to recede, the private sector must step up and improve its own protective security measures,” explains Ed Butler, Head of Risk Analysis at Pool Re.
Butler goes on to highlight the significance of the government’s decision to bring forward the amendment to the Reinsurance (Act of Terrorism) Act 1993 to allow the extension of coverage to Non-Damage Business Interruption (NDBI).
This change in legislation will help close the ‘terrorism insurance gap’ which first became evident in Europe in 2015/16 and then at Borough Market in 2017, when market traders were unable to receive insurance payouts for over a month after the terror attack.
“The terrorism re/insurance sector can have an important influence in changing behaviours through incentivisation and compliance measures, as well as increasing the take up of terrorism cover among SMEs and businesses outside London,” added Butler.
In addition, the report finds the release of convicted terrorists – recently or in the near future – will keep the current UK terrorism threat level at severe for a prolonged period. Such individuals include al Muhajiroun co-founder Anjem Choudary, Erol Incedal and members of the al Qaeda cell who attempted to bring down transatlantic planes with liquid explosives in 2006.
Julian Enoizi, Chief Executive, Pool Re said, “Plot disruptions are at a high level and the preparation of attacks is likely to continue. The private sector should mitigate risk by reducing the likelihood of being caught up in an attack, and be prepared to recover quickly if attacks do occur.”
“At Pool Re, we stand ready to help strengthen economic resilience by covering non-damage business interruption as soon as the legislation, currently going through Parliament, is passed.”
