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Pool Re moving with plans for nondamage business interruption terror cover

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Pool Re moving with plans for nondamage business interruption terror cover

Pool Reinsurance Co. Ltd. is pushing forward with plans to offer nondamage business interruption coverage in light of the ongoing severe threat of terrorism in the United Kingdom.

Eight terrorist attacks in Great Britain since 2014 have resulted in 37 deaths and 261 injuries, while there have been 17 disrupted terrorist plots in that time, the U.K. government-backed terrorism reinsurance backstop said in a report published Tuesday.

“It is therefore unsurprising that the UK threat level from Islamist extremism remains at severe and is likely to remain so for the next 18 to 24 months,” the organization said in its report.

“Islamist extremism will continue to pose the main threat to the UK in the foreseeable future, with Daesh remaining the most effective global entity,” the report concluded. “The risk of a spectacular attack, by either (al Qaeda) or Daesh, cannot be discounted, nor can the growing threat posed by (Extreme Right Wing) terrorism.”

Pool Re is planning to cover nondamage business interruption once legislative changes are passed to allow the extension of such coverage, the organization said in its statement accompanying the report. From that point, Pool Re will be able to cover losses caused when businesses cannot operate because of a wide police cordon even though their premises may not be damaged, as happened in London’s Borough Market in June 2017.

If approved in Parliament, the new NDBI cover will include loss of trade caused by being unable to access, exit or use the insured’s premises because of the actions of the police or another statutory authority when responding to terrorist activity, according to the statement. It will also provide cover for loss of business as a result of a downturn in customer footfall at insured businesses within a mile of a terrorist incident.

Pool Re is hoping to provide the coverage beginning in January, according to the report.

“It’s a testament to the effectiveness of the relationship between government and the private sector that we are about to close a significant terrorism insurance gap for UK business,” Pool Re Chief Executive Julian Enoizi said in the statement. “This gives confidence to the customers in the communities they serve that in the event of a terrorist attack, services can and will continue. All commercial property and business owners will benefit from the proposed cover, particularly small- and medium-sized businesses which are particularly vulnerable to business interruption losses following attacks, as was seen last year in both Manchester and London.”

In April, Pool Re added new coverage for physical damage caused by an act of cyber terrorism.

 

 

 

 

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    Pool Reinsurance Co. Ltd., the U.K. government-backed terrorism reinsurance backstop, predicted that terror attacks on crowded places linked to the transport sector, the military, police and politicians are likely to increase this year, City A.M. reported. With more terrorism expected, Pool Ree announced last year that it would extend its cover for material damage and direct business interruption caused by acts of terrorism following a cyber attack trigger.