Pool Re has released its fifth Terrorism Threat and Mitigation Report covering the period August 2018 to August 2019. In this latest edition, the authors look at the UK’s threat landscape, consider Daesh’s strategy following the loss of its so-called ‘Caliphate’ and evaluate the risks posed by unconventional attack methodologies. Insights into terrorist target selection and how artificial intelligence can be used to aid counter-terror efforts are provided by Andrew Silke, Pool Re Professor of Terrorism at Cranfield University, and Sacha Babuta, Research Fellow at the Royal United Services Institute respectively. An analysis of the Global Terrorism Database, the most comprehensive public record of terrorist attacks, is offered, looking at trends in targeting, tactics and offenders’ behaviour since 1990.
Pool Re has also launched its Pool Re Solutions, a new terrorism risk consultancy proposition, which showcases a range of risk management, modelling and mitigation initiatives we have developed to support our member insurers and their policy holders. Pool Re Solutions is comprised of three core pillars:
Risk Awareness. This will provide analysis, intelligence and expertise on all aspects of the terrorism threat, using a broad range of data from sources such as the Global Terrorism Database.
Risk Modelling. This will advance work in developing sophisticated terrorism modelling tools and techniques that can underpin better pricing and greater deployment of capacity into terrorism (re)insurance.
Risk Management. This is a key facilitator of terrorism risk management information and techniques, linking government agencies, academia, risk professionals and the insurance industry to ensure knowledge and best practice is widely recognised and shared. As part of Risk Management, a Vulnerability Self-Assessment tool (VSAT) has been developed which is exclusively available for medium-to-large policy holders. For those using VSAT, a insurance premium discount of 7.5% is available for holders with assets of £50m and above.
Julian Enoizi, Pool Re CEO, commented: ‘I am confident that Solutions will allow us to meaningfully address the information and demand gaps currently presenting challenges such as underinsurance in the SME sector, and enable Pool Re to continue to bridge and harness the best from both of their public and private partners.’
For a short Pool Re guide that explains why SMEs need to think about insuring themselves against property damage and business interruption as a result of a terrorist attack, see here. For insurance purposes, Pool Re considers SMEs with assets up to £5m.
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