Lloyd’s insurer Atrium partners with MGA Fiducia for terror cover
Speciality MGA Fiducia has teamed up with Lloyd’s insurer Atrium Underwriting to produce a new terrorism product which will allow brokers to offer specific cover to their clients of all sizes.
Fiducia and Atrium have developed a terrorism and sabotage policy which takes account of the changing risks associated with the latest types of terror threats, according to the statement.
“Understanding the benefits of having a standalone terrorism policy is a difficult proposition for many clients but we at Fiducia have developed, for UK regional brokers, a market leading terrorism product to assist them in engaging with clients who feel their property and assets may not be vulnerable to an act of terrorism," said David Heeney, underwriter at Fiducia.
"Following previous terrorism events, 70% of the companies that went out of business due to the after effects had suffered no physical damage or loss. They simply were unable to access their buildings and the area, which had been popular with visitors, no longer held any attraction so business was dramatically reduced."
Stuart Harmer, underwriter political violence at Atrium, commented: "We are excited to be supporting the Fiducia team. The company has put first class service levels at the heart of their business. [...] we look forward to a long and successful partnership."
The company stated that while the UK insurance sector’s specialist terrorism risk pool, Pool Re, offers cover it does so in most cases only if the insured’s building suffered physical damage.
"There has been a demand for terrorism cover that offers protection above and beyond that offered by the Pool Re scheme," Heeney added. "While Lloyd’s underwriters have been providing cover with extensions for business interruption, denial of access and loss of attraction, regional brokers have not really had the ability to access it until now."
The company noted that there is now a real demand for terrorism cover which is triggered if a business suffers business interruption, although there is no physical damage to the insured’s premises. Many firms in the recent attacks on the Manchester Arena and Borough Market found they were unable to access their buildings due to the ongoing police operations for some days or weeks afterwards. Businesses in Borough Market have seen a significant fall in trade as visitors are concerned to go to the area following the attack, Fiducia said.
Fiducia stated that the new policy comes with access to Atrium’s unique risk management analysis software that will enable brokers to provide detailed advice on the level and type of insurance needed by their clients on an individual basis.
"Blast Zone Exposure Management is a unique risk management analysis software," Heeney commented. "Our experience shows us that the largest single location often isn't the largest accumulation of exposure a client has within a 200-metre blast zone where they can suffer both physical damage and business interruption that reaches far beyond a top single location value. We can analyse the insured’s assets and assist them in selecting a level of cover to match their accumulation of exposure, eliminating under and over insurance."
Atrium is an insurance and reinsurance business, underwriting through Syndicate 609 at Lloyd’s.
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