Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UK terror reinsurance fund seeks to extend coverage

Published 26/09/2017, 16:22
Updated 26/09/2017, 16:30
© Reuters.  UK terror reinsurance fund seeks to extend coverage

LONDON (Reuters) - Britain's Pool Re, which helps insurers pay out claims on property damage caused by terror attacks, is in talks with the government to extend cover to businesses that suffer indirectly from an attack, such as through loss of custom.

The 6 billion pound reinsurance fund was set up in 1993 to backstop insurers paying out claims on property damage from attacks deemed by the UK government to be terror-related, as well as business interruption due to such damage.

Some recent attacks in Britain and elsewhere in Europe, however, have caused businesses to close or lose custom but have not involved much property damage.

"Pool Re has been working to fill the previously unforeseen coverage gap since the attacks in Europe last year," it said on Tuesday in its latest terrorism threat and mitigation report.

"In light of the recent spate of UK attacks, intensive talks at ministerial level are now under way."

The extension of cover, for instance through reinsuring non-damage business interruption insurance, requires a change in UK law, Pool Re said.

Small and medium-sized enterprises can be affected for up to nine months by an attack or even by concern about security, and suffer losses of up to 30 percent of annual revenue, Pool Re said.

Pool Re is financed by the insurance industry with government backing. Pay-outs depend on the British government deeming an attack to be terror-related.

Pool Re will also from next year start offering reinsurance for a fire or explosion caused by a cyber attack that is deemed to be terror related, it said in Tuesday's report.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.