Pool Re, the UK’s terrorism reinsurance pool, announced it will extend its cover to include material damage and direct business interruption caused by acts of terrorism using a cyber trigger. The new cover will be available in April 2018.
The cover, which will exclude intangible assets, will be offered as standard to all policyholders that purchase terrorism insurance from Pool Re members.
This initiative is the culmination of more than two years of work, said Pool Re in a statement.
Pool Re explained the coverage extension is based upon a research study commissioned from the Centre for Risk Studies at University of Cambridge Judge Business School.
“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,” said Julian Enoizi, chief executive, Pool Re.
“The threat from a cyber attack is evident and businesses have become increasingly concerned about the extensive repercussions these types of attacks could have on them,” he added.
“This was a clear gap in our coverage which left businesses potentially exposed. After rigorous analysis, we determined that we can close this gap,” Enoizi said, noting that this move “establishes a new standard for terrorism cover and places the UK at the forefront of nations reinforcing their economies against emerging risks.”
He said it also demonstrates “what can be achieved through cross-industry, academic and governmental collaboration.”
Simon Ruffle, director of Research and Innovation at the Cambridge Centre for Risk Studies, said the study for Pool Re was very timely given the evolving nature of cyber terrorism.
“The centre has applied an academic approach to modern business, enabling a deep analysis of current geopolitics and technology in order to illuminate the shape of an emerging threat to the UK economy,” 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.”
Source: Pool Re