Article / Risk Management
Terrorism Cover: Premiums May Rise with UK’s Proposed Changes

With the recent news that the UK Treasury has demanded a rise in the fees they receive from the Pool Re terrorism insurance fund, risk managers and insurance brokers have stated that there would be scant provision to manage the costs of nuclear, biological and chemical terrorist attacks should the UK Treasury remove support for this scheme.

Lockton’s Head of War & Terrorism David Cheales has warned that companies “may or may not” be able to secure coverage for conventional terrorism risks.

He added that despite there being alternative capacity available, the coverage typically wouldn’t include nuclear, chemical, biological and radiological (NCBR) risks, as the potential costs are so large. For these risks, the insurance market typically put limits of only about £100m for each policy.

To read David’s full comments in the Financial Times today, please click here to access the article. Note that a subscription is required.

Please click here to also read his briefing, which provides detailed information on the alternative cover available and the background of Pool Re. 

Contact:

David Cheales
Head of War and Terrorism
Lockton Companies LLP
+44 (0) 207 933 2291
david.cheales@uk.lockton.com

    
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