Pool Re, the terrorism reinsurance pool, today announces the publication of its latest Terrorism Frequency Report, which coincides with the 25th anniversary of the reinsurer’s foundation. The report assesses terrorism trends in advanced markets from 1990 to 2016 through the lens of those (re)insuring terrorism over this period. It provides an insight into the shifting nature of the terrorist threat, looking at the frequency of attacks, the changes in methodology and the financial impact of the property damage caused.
This latest edition, which also reviews recent terrorist attacks across the globe, includes assessment of the attack against Sergei and Yulia Skripal and the coverage gap revealed in its wake. A further article looks back on the IRA’s mainland bombing campaign and the events that led to Pool Re’s foundation, written by the newly appointed Pool Re and Cranfield’s Professor of Terrorism, Risk Management and Resilience. In a study of the intensified threat posed by modern extreme right-wing terrorism, implications for the insurance market and counter-terror police are reviewed and discussed.
Julian Enoizi, Chief Executive, Pool Re said, “This report marks the 25th anniversary of Pool Re. The scheme and the threat which it was established to mitigate has changed markedly in that time. We have sought to continuously evolve our proposition and to learn from our experience of terrorism risk in an effort to develop analytical and actuarial tools. By assessing the libraries of data available, in collaboration with our academic partners, from a (re)insurance standpoint and then distilling this information we aim to provide a resource which will enable the market to retain ever more of this risk. The analyses in this report are a significant step towards that goal.
We must also seek to analyse those events which point towards an emerging risk. The losses being suffered by businesses in Salisbury are highly unusual. CBRN has historically been excluded from all commercial property and business interruption insurance policies as it was thought that the sheer magnitude of the potential losses would exceed the ability of insurance and reinsurance companies to meet claims. However, the disturbing event in Salisbury shows that these types of attack can be localised and could be deployed by criminal or terrorist actors. They have highlighted the macro consequences of a micro CBRN event. This should prompt debate within our industry. Consideration should be given to whether the perceived wisdom around certain perils needs to be reassessed and whether now is the time to address other risks, for which underwriters also do not provide cover.”
The latest Terrorism Frequency Report is available here – https://www.poolre.co.uk/wp-content/uploads/2018/04/Terrorism-Frequency-Report-April-2018.pdf
Haggie Partners LLP
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