Pool Re cover will now include physical damage from cyber terrorism from April 2018
Pool Re, the terrorism reinsurance pool, announced that, from April 2018, it will extend its cover to include material damage and direct business interruption caused by cyber terrorism.
It will offer this as standard to all policyholders who purchase terrorism insurance from Pool Re Members.
The cover won’t, however, include intangible assets, as Pool Re wants to solely focus on the physical damage done.
The initiative is the culmination of more than two years of work. The coverage extension is based on a research study, which was carried out to further Pool Re’s understanding of the nature of the cyber terrorism threat.
Julian Enoizi, chief executive of Pool Re said: “We will continue to evolve our coverage and today’s announcement is an effort to future-proof the scheme and to close a potential gap in coverage before it became apparent.
“This was a clear gap which left businesses potentially exposed. After rigorous analysis, we determined that we can close this gap.
“We will continue to research and evaluate other emerging terror threats as they become evident.”
Simon Ruffle, director of research and innovation at the Cambridge Centre for Risk Studies, which carried out the study, said it was very timely given the evolving nature of cyber terrorism.
He said: “The cyber terrorism scenarios we examined provide insight into what types of attacks might be possible in the next few years that could impact Pool Re’s portfolio.”
Enoizi added: “It is a pivotal moment for Pool Re which establishes a new standard for terrorism cover and places the UK at the forefront of nations reinforcing their economies against emerging risks. It is also an indication of what can be achieved through cross-industry, academic and governmental collaboration.”
The Federation of Small Businesses recently backed Pool Re over its calls for non-damage business interruption cover.