Pool Re launches consultation as it looks to enhance SME terrorism coverage

Pool Re has launched a market consultation to explore the reintegration of terrorism cover as a standard feature within commercial property insurance for small and medium-sized enterprises (SMEs).

The consultation aims to seek views on how to address the low uptake of terrorism insurance among SMEs and explore potential propositions to enhance economic resilience.

The consultation, which will run until the end of April 2025, will collect feedback from insurers, intermediaries, policyholders and industry bodies.

Tom Clementi, chief executive at Pool Re, said:“Only 4% of SMEs in the UK currently have terrorism insurance cover and many more than that will likely think they have cover.

“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.”

Reinsurance scheme

This comes as Pool Re prepares to launch its new reinsurance scheme.

Set to launch on 1 April 2025, it is structured to simplify and reduce the cost of including terrorism cover in SME property policies.

The goal is to return the market to pre-1993 conditions, when terrorism cover was a standard inclusion in commercial property package wordings.

“The consultation we are launching today seeks views from far and wide on how best to achieve this outcome,” Clementi added.

“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.”