Press Release

Insurers can help firms mitigate terrorist risk, argues International Institute of Strategic Studies in latest CII Thinkpiece

20 January, 2009

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 summarises 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 points 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 comments, “in other words, to have the ability to bounce back and continue life as normal in the wake of an attack.” The article sets out a 12-point action plan to help firms prepare, signposting to organisations and resources that could be of assistance.

Laurence Baxter, Head of Policy & Research at the CII welcomes this latest addition to the Thinkpieceseries: “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 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 programme.

This Thinkpiece can be found 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.

The CII and the Metropolitan Police are holding a Counter Terrorist Workshop for all businesses in the insurance industry on 10th February at the Insurance Hall in association with the National Counter Terrorism Security Office (NaCTSO) and the Metropolitan Police Counter Terrorism Command. This event will feature a multi media simulation of an attack where delegates will be faced with a series of questions and dilemmas to resolve, providing them with a unique opportunity to learn how to protect a business and its employees.

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