Written Questions are submitted by MPs or Lords to receive information from a Department.
|25 Oct 2017, 4:58 p.m.||Pool Re: Terrorism||Neil Coyle|
To ask Mr Chancellor of the Exchequer, when his Department was first notified of the need to update Pool Reinsurance to cover knife, vehicle and cyber terrorism; and what the timetable is for its reform.
Answer (Steve Barclay)
The Reinsurance (Acts of Terrorism) Act 1993 established the government-backed terrorism reinsurer, Pool Reinsurance. The scheme reinsures against business losses caused by physical damage after an act of terrorism, in recognition of the specific challenges in relation to a lack of insurance for industrial and commercial property at that time. It was not designed to cover personal injury claims, such as those caused by a knife or vehicle attack, or non-physical damage, such as data theft.
Within the remit of providing this type of reinsurance, the scheme was recently amended to remove the cyber exclusion. This means that physical damage caused remotely, e.g. by a “cyber trigger”, is included in the scope of cover. This change will come into effect on 1 April 2018.
The government is in regular discussion with the insurance industry, Pool Re and other interested parties to make sure that the Reinsurance Act 1993 continues to enable appropriate terrorism cover to be available for businesses.
I have also met the hon Member to discuss this.