The insurance industry can play a key role in preparing businesses for the terrorist threat according to the global security think tank International Institute of Strategic Studies (IISS) in the latest Chartered Insurance Institute (CII) Thinkpiece entitled “Responding to the terrorist threat: Implications for UK businesses and insurance.”
In the article, Raffaello Pantucci from the IISS summarizes the terrorist threat to the UK and its business interests abroad and lists some of the precautions firms can implement to protect themselves against future attacks.
He pointed out that insurers can encourage firms through terrorism risk cover to take measures such as business planning, and argues that preparing for the risk of terrorism can actually play a part in fighting terrorism itself. “A key aspect to effectively countering the threat is to demonstrate resilience in its face,” Pantucci argued. “In other words, to have the ability to bounce back and continue life as normal in the wake of an attack.”
The CII’s bulletin noted that the “article sets out a 12-point action plan to help firms prepare signposting to organizations and resources that could be of assistance.”
Laurence Baxter, Head of Policy & Research at the CII commented: “Events in Mumbai last month are a vivid reminder that the threat of terrorist attack remains real and varied. While the security services work to prevent further atrocities, businesses and the insurance industry can also demonstrate resilience by showing that trade and commerce would continue should another attack occur.”
The Thinkpiece Article looks at the possible costs to businesses generated by a terrorist attack and also examines how Pool Reinsurance (Pool Re – established in 1993 as a result of a series of major IRA attacks in the UK) could assist in any major recovery program.
The full article can be obtained at: www.cii.co.uk/thinkpiece. It is the eleventh in a series of articles on various topics of interest to insurance and financial services stakeholders, and is not the view of the CII itself but merely published by the professional body to further debate in the field.
Source: Chartered Insurance Institute – www.cii.co.uk
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