Pool Re new terrorism risk tool to reduce premium costs

UK terrorism reinsurer Pool Re has launched a new risk self-assessment tool, aimed at medium and large businesses, that will help insureds reduce the cost of their premiums.

The vulnerability self-assessment tool (VSAT) is co-developed with ARL Partners, and will be available to all Pool Re member insurers for risks falling due on or after April 1.

“Raising awareness of terrorism risk, as well as promoting and incentivising the adoption of proven risk mitigation measures, are core to Pool Re’s strategy. VSAT is the latest example of this," said Steve Coates, chief underwriting officer at Pool Re. "It has been built to deal with contemporary terrorism threats and provide a framework for policyholders to benchmark their approach to terrorism risk management. It also aims to improve their approach where necessary and in doing so provide a discount on their premium.”

The company said that the tool will enable Pool Re member insurers to offer a 5 percent premium discount to insureds which implement proven and effective risk mitigation measures. It builds on Pool Re’s collaboration with the National Counter Terrorism Security Office’s Crowded Places programme which offers discounts for risks covered by the programme.