Running until the end of April 2025, the consultation will collect feedback from Pool Re’s members, (re)insurance intermediaries, policyholders, industry bodies and the wider insurance market, and is designed to seek views on how best to address the protection gap and potentially significant impact on economic resilience caused by the low uptake of terrorism insurance by SMEs.
Tom Clementi, Pool Re’s CEO, commented: “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.
Pool Re’s new, modernised reinsurance scheme, which launches on 1 April 2025, is designed to make it far simpler and more cost effective for Members to reincorporate terrorism cover into their SME property policies as a matter of course. If this can be achieved, it would return the market to the position before Pool Re was established in 1993, when terrorism cover was a standard feature of commercial property package wordings.
The consultation we are launching today seeks views from far and wide on how best to achieve this outcome. 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.”
The consultation is available here
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