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Pool Re, Britain’s largest terrorism reinsurer, has launched a new incentive scheme for its members, aimed at increasing the uptake of terrorism insurance cover among SMEs across Britain, effective from April 1. The scheme will make discounts available to Pool Re Members on their reinsurance costs when they reintegrate terrorism cover as standard across their SME property policies. Members can choose to reinstate cover across some or all of their commercial property portfolio in return for reduced pricing on that element of their reinsurance portfolio held with Pool Re.
Though comprising 99 per cent of the UK’s business community, only 4pc of SMEs are covered by dedicated terrorism insurance products (according to a survey from the Federation of Small Businesses). After the 1992 IRA bomb attack on the Baltic Exchange, terrorism exclusions became standard in UK commercial property insurance policies, leaving SMEs without terrorism cover unless they actively choose to buy back the cover.
Hence Pool Re is urging its members to make SME terrorism cover the norm – particularly as many SMEs already believe that terrorism cover is already integrated into their standard property insurance policy. Member participation in the scheme is voluntary, but to qualify, terrorism cover must be embedded as standard in the product and non-removable from policies.
Tom Clementi, Pool Re’s CEO, said: “Enhancing terrorism protection for SMEs is not only about closing an insurance coverage gap, it is about strengthening national economic resilience in a world where the terrorism risk landscape continues to evolve. This scheme gives our Members an additional incentive to offer terrorism cover as standard, as was the case prior to the formation of Pool Re in 1993. With no material financial burden placed on SMEs, we hope the scheme will lead to a significant uptick in coverage across the economy.”
And Lucy Rigby KC MP, Economic Secretary to the Treasury, said “Pool Re plays an important role in supporting the UK’s economic resilience, and this incentive scheme delivers real market change for the UK’s SMEs. The Government stands ready to support efforts to strengthen the resilience of UK businesses, and we encourage Pool Re’s Members to make the most of this excellent opportunity to expand their SME coverage offering – it’s good news for Pool Re, its members and the UK’s business community.”
