By Pool Re Solutions Threat Analysis Team
Extreme Right-Wing terrorism has emerged as a significant terrorism threat in the UK in recent years. Following riots across the UK in the aftermath of a mass stabbing conducted in Southport, UK, in July 2024, the threat posed by Extreme Right-Wing terrorism gained increased media attention.
Pool Re Solutions’ Threat Analysts sought to explore the current state of Extreme Right-Wing terrorism in the UK, and the potential implications for business, through a deep-dive report. Some of the key findings from the report included:
- How does the rise of Extreme Right-Wing terrorism impact UK businesses? Are there specific industries or sectors more at risk?
Based on the current intent of individuals adhering to an Extreme Right-Wing ideology, it is highly likely that any Extreme Right-Wing terrorist attack conducted in the UK at this time would target sites and/or individuals associated with the UK Government, online and traditional media companies, and minority groups with protected characteristics. E.g., LGBTQIA+ communities and/or organisations, sites related to refugees in the UK, religious and ethnic minorities, etc.
E.g., On 25 October 2024, Callum Parslow was found guilty of attempted murder following a Bladed Weapons attack against a man in April 2024. Parslow had planned to kill migrants housed by the UK Government at the Pear Tree Inn, Worchester. The site had previously been used by the UK Government to house asylum seekers but was no longer in use for that purpose at the time of attack. Parslow was inspired by an Extreme Right-Wing ideology.[1]
- What are the potential business risks related to Extreme Right-Wing terrorism?
Dependent on the nature of any given business, there is a realistic possibility that there could be a heightened threat posed to members of staff or customers from Extreme Right-Wing terrorist actors. Extreme Right-Wing terrorist actors in the UK have previously demonstrated the intent and capability to conduct attacks predominantly against people, rather than property, in advancement of their given cause. E.g., 2016 murder of Jo Cox MP; 2017 Finsbury Park attack; 2024 Pear Tree Inn attack.
It is highly likely that any Extreme Right-Wing terrorist attack in the UK would be conducted by an individual using a low-sophistication methodology. E.g., Bladed Weapons, Vehicle as a Weapon, Fire as a Weapon.[2] There is a realistic possibility that any successful Extreme Right-Wing terrorist attack conducted in the UK could lead to business disruption and potential reputational losses at sites in proximity to the incident.
- Are there financial implications?
Whilst previous attacks in the UK have demonstrated the intent of Extreme Right-Wing terrorist actors to predominantly target people, rather than property, there is a realistic possibility that an Extreme Right-Wing terrorist attack could impact business continuity at any given site. E.g., Cordons resulting from an attack could encompass a large number of businesses, who could be impacted by Non-Damage Businesses Interruption (NDBI).
E.g., Although conducted as part of an Islamist terrorist attack and despite not being damaged physically, several small businesses located within Borough Market suffered in the aftermath of the 2017 London Bridge attack due to forced closure resulting from the subsequent police investigation and cordon put in place. In 2019, Pool Re’s members were given the option to reinsure NDBI in light of the gap in cover that became evident in the aftermath of the attack.[3]
Further information on the current state of Extreme Right-Wing terrorism in the UK and the potential implications for business can be found in the following report, researched and written by Pool Re Solutions’ Threat Analysts. Additionally, an episode of Pool Re’s podcast, Totally Terrorism, covering the current state of Extreme Right-Wing terrorism can be found here.
Terrorism, Insurance and Pool Re
Established in 1993, Pool Reinsurance (Pool Re) was set up following the Provisional IRA’s bombing campaign in mainland Britain. Consistent and devastating improvised explosive device (IED) attacks by the group caused most insurers to withdraw their terrorism cover leading to businesses and individuals being unable to insure their properties. As a mutual, Pool Re collects premiums from our Members, building a fund so that should a terrorist attack occur in the UK, insurance cover can be provided to policy holders, allowing organisations to once again insure their properties against the risk of terrorism. As well as Pool Re’s fund, the company is backed by an unlimited Government guarantee, should a terrorist attack occur which exhausts the entire fund.
To date, adjusting for inflation, we have paid claims in excess of £1.25 billion in relation to 13 terrorist events since our foundation. However, we have never called on the Government’s guarantee as the scheme has been effective at insulating the taxpayer from financial losses arising from acts of terrorism.
We operate as a unique public-private partnership, with the benefit of an unlimited HM Treasury loan facility. We cover £2.2trillion of UK based assets including businesses of all sizes, from shopping centres and local traders to airports and power grids; across sectors of the economy such as real estate, retail, transport, construction and energy.
In response to the increasing complexities of terrorism risk, we developed Pool Re Solutions, a terrorism risk management division created to provide Member insurers and their policyholders with a range of tools and information to better understand and mitigate the complex risk of terrorism. The Solutions’ arm of Pool Re offers a range of services, free of charge to Members and policy holders, through our specialist Threat Analysis and Risk Consulting teams.
Pool Re Solutions Threat Analysis provides monthly and yearly terrorism threat assessments on key incidents which may impact the UK as well as in-depth research into specific terrorist groups, ideologies and methodologies such as the above work into Extreme Right-Wing terrorism. We also produce sector specific threat assessments across a range of organisations, from pubs, schools and high-street shops, to arenas, airports and shopping centres. We even produce the podcast Totally Terrorism, interviewing leading voices in the counter-terrorism and security sector. All of this is free and publicly available on our website. Our Threat Analysis also take on bespoke threat consulting work, to help organisations understand the specific terrorism threats they may face.
Pool Re Solutions Risk Management capabilities are delivered bespoke to policyholders or Members by our expert Risk Consultants. They include free-to-use advice, Threat, Vulnerability, Risk Assessments (TVRA’s), Probable Maximum Loss Studies (PML’s) and policy reviews. We are also able to organise and provide training and exercises to help improve an organisation’s resilience to a terrorist attack. Our Vulnerability Self-Assessment Tool (VSAT) is also free to use on our website and a great first step for a business to understand the risks they are exposed to.
For more information on what our Solutions team can offer, please visit poolre.co.uk or email solutions@poolre.co.uk.