Pool Re’s new loss mitigation credit initiative, in partnership with the UK government’s National Counter Terrorism Security Office (NaCTSO), expands on several modernising reforms launched lately at the public/private terrorism risk backstop.
Pool Re, the UK’s terrorism reinsurance fund, would offer discounted prices on premium ceded to it insuring entities engaged with the NaCTSO’s “Crowded Places Programme”.
Pool Re said the programme – the latest in a series of recent announcements – promotes consideration of terrorist attack methodologies and outlines risk management options.
The joint initiative will be formally launched and open for application in October 2015.
“To be considered for an LMC which may lead to a potential premium reduction of 2.5%, insureds must show they are implementing an action plan under the Programme,” said Pool Re.
The Protective Security Improvement Activity (PSIA) is the service delivery mechanism of the Crowded Places Programme, which Pool Re said “provides a nationally consistent, proportionate and auditable approach to terrorism risk management”.
Paul Howell, a senior counter terrorism specialist, NaCTSO, said: “Following the adoption of the PSIA in 2014, considerable progress has been made in engaging crowded place site owners and operators by Counter Terrorism Security Advisers, and the progression of protective security and preparedness improvement activities.”
Pool Re’s chief executive, Julian Enoizi, added: “The LMC will act as a clear, tangible incentive for insureds to engage with the Crowded Places Programme and implement proven risk management procedures and initiatives, consistent with the PSIA, which will improve their resilience to a terrorist attack. I am very pleased to announce the development of this initiative in collaboration with NaCTSO which is a key pillar in our ongoing efforts to enhance and evolve Pool Re’s proposition.”
Julian Enoizi, Pool Re’s chief executive, recently spoke to Reactions, giving an overview of upcoming modernisation changes, all slated for October implementation – including a new SME product, revised deductibles and enhanced use of risk modelling techniques – in an interview featured in the current (May) issue of the magazine.
For the full Enoizi interview, please click here.