Great Britain’s terrorism risk re/insurance pool, backed by the Treasury, has launched a consultation focused on insuredness among small-to-medium-sized enterprises (SMEs).
Pool Re has launched a market consultation to explore the reintegration of terrorism cover as a standard feature within commercial property insurance for SMEs.
The consultation by Britain’s government-backed terrorism reinsurer will run until the end of April.
The consultation will collect feedback from Pool Re’s members, re/insurance brokers, policyholders, industry bodies and the wider insurance market.
Pool Re said it was designed to seek views on how best to address the protection gap and potentially significant impact on economic resilience caused by low uptake of terrorism insurance among SMEs.
Pool Re’s new treaty reinsurance model which launches on 1 April 2025, is designed to make it simpler and more cost effective for members to reincorporate terrorism cover into their SME property policies as a matter of course, Pool Re said.
If this can be achieved, it would return the market to the position before Pool Re was established in 1993, the government-backed reinsurer noted, when terrorism cover was a standard feature of commercial property package wordings.
“Only 4% of SMEs in the UK currently have terrorism insurance cover, and many more than that will likely think they have cover,” said Tom Clementi, Pool Re’s CEO (pictured).
“We are seeking to reduce these significant protection and expectation gaps, and thereby bolster the resilience of the UK economy, by offering our members a more attractive pricing proposition in respect of their SME portfolios.
“The consultation we are launching today seeks views from far and wide on how best to achieve this outcome. We are reliant on market feedback to make sure that our proposals are sensible and deliver practical benefits for all, so I encourage you strongly to make your views heard.”
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