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Terrorism 06 Nov 2018

The evolving threat of terrorism


What is the exposure to your business?
The threat of terrorism in the UK has been “Severe” since 2014, meaning that an attack is “Highly Likely”. This has been lifted at 2 separate occasions to “Critical” (expected imminently), following the attacks on Manchester Arena and London Borough Market in 2017. Whilst historically the Terrorism threat has been isolated to major cities, we are now seeing an increased spread of threat across the UK, due to the knock-on effect caused by supply chain disruption and the increase in self-radicalisation online.

The threat we face now is as much about catastrophic damage caused by explosion as it is about bodily injury caused by vehicle or knife attack, and the ensuing disruption to your business or commercial property. Your business may not be the target of a Terrorist attack, but could be impacted by either the radius of the blast, or the business interruption and
denial of access caused either by the time taken to repair and replace, or indeed the consequences for the supply chain and the footfall returning to the same level prior to the attack.


Key considerations
The UK Terrorism insurance market has undergone some fundamental changes over the last few years, with the threat that customers are facing constantly evolving. This has been influenced by the ongoing instability in the Middle East, as well as home grown extremism both from Islamic fundamentalism as well as the Far Right.

As such the Insurance market has had to adapt to these changes, to match the shift from the military tactics and weaponry used by the IRA in the 90’s to the less sophisticated attacks using vehicles and knives that we have seen across
Western Europe over the last 3 years.


What cover is available?
Pool Re has, as a result of the changing impact of Terrorism attacks, adapted their wordings to include fire following cyber attack, as well as looking at including non damage denial of access at some stage next year.

Our standalone option, through Geo Specialty has created a wording to bridge the gap in cover and to offer cover for your business if you are a direct victim of a Terrorist event, or if you are just caught up in the consequential business interruption or loss of attraction thereafter.


Comparison Table*

*correct as of 01-11-18


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