The reinsurer hopes the changes will lead to more resilient businesses
Pool Re, the insurance sector’s mutual for insuring terrorism risk in the UK, has updated its terrorism insurance provision for UK businesses, aiming to reduce costs for organisations as well as improve the accessibility of terrorism cover.
The reinsurer has, therefore, expanded its definition of small to medium-sized enterprises (SMEs) to now include organisations with assets up to £5m, compared to its previous £2m cap. Pool Re believes this will enable insurers to more easily integrate cover within their automated SME offerings.
Steve Coates, chief underwriting officer at Pool Re, explained: “Pool Re recognises that different buyers have different profiles, and we need to continuously adapt to their needs.
“Widening the definition of SME means that we can offer more affordable terrorism cover and, as a result, better accessibility to a wider range of companies.”
Pool Re has also reduced the standard business interruption rate from 0.019% to 0.017% and reduced the Zone B, MD rate.
Furthermore, clients using Pool Re’s Vulnerability Self-Assessment Tool (VSAT) will receive a premium discount of 7.5%, compared to 5% previously.
Julian Enoizi, chief executive at Pool Re, added: “These changes overall are about reducing the cost of reinsurance for our cedants so that those savings can, in turn, be passed on to the ultimate customer.
“Pool Re exists to facilitate the effective provision of terrorism insurance and to ensure that it is widely available. These enhancements are all important developments in that process.
“We know that our cedants welcome these changes and we hope that they will enable more businesses across the UK to take up the vital offer of terrorism protection and to increase the overall resilience of the economy as a result.”
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