AXA Insurance UK, a provider of commercial insurance in the UK, has joined Pool Re’s SME Incentive Scheme, an initiative designed to increase access to terrorism insurance for small and medium-sized enterprises (SMEs).
Pool Re, the UK’s terrorism reinsurer, said AXA’s participation would support efforts to address the gap in insurance protection available to smaller businesses.
Through the scheme, AXA will incorporate terrorism cover as standard into selected digital SME insurance products, allowing eligible businesses to obtain protection without purchasing a separate policy.
AXA’s cover will include protection against physical damage resulting from a terrorist incident, as well as Non-Damage Business Interruption (NDBI) cover. According to Pool Re, this additional protection applies when businesses are prevented from accessing their premises because of restrictions imposed by the police or other authorities following a terrorist incident, even if the premises have not sustained physical damage.
Pool Re established the SME Incentive Scheme to encourage more small businesses to obtain terrorism insurance by making it part of qualifying commercial insurance products. The organisation estimates that approximately 5% of UK SMEs currently purchase dedicated terrorism cover, potentially leaving a significant proportion exposed to financial losses and operational disruption following an attack.
Jonathan Gray, Chief Underwriting Officer at Pool Re, commented: “We are delighted to welcome AXA to the SME Incentive Scheme. AXA’s decision to include terrorism cover as standard within selected digital SME products is another important step towards closing the UK’s terrorism protection gap.
“SMEs are the backbone of the UK economy, yet many remain vulnerable to the financial impacts of terrorism. By making this cover more accessible and embedding it within core products, AXA is helping ensure that more businesses have the protection they need to recover and continue operating following an incident.
“We are particularly pleased to see the inclusion of Non-Damage Denial of Access cover, recognising that the effects of a terrorist attack often extend well beyond physical damage. We look forward to continuing to work with AXA and other Members to improve the resilience of UK businesses.”
Matt Briggs, UK Technical Director, Commercial Property Underwriting at AXA Insurance, added: “We are delighted to be providing terrorism cover as standard for SMEs placed by insurance brokers on AXA’s digital platforms, subject to the £10 million sum insured limit set by Pool Re.
“In addition, AXA will go further, not only offering traditional blast terrorism cover but also providing a £25k limit for non-damage denial of access as standard. If we reflect on recent terrorism events, many have targeted people rather than premises.
“In these situations, there is very little property damage, but when an area is cordoned and police investigations proceed, SMEs are often locked out of their businesses for an extended period. Our product will support them through this difficult period. In our view, this is the cover SMEs really need.”
Pool Re said participating members of the SME Incentive Scheme can receive reductions in terrorism reinsurance costs when they make terrorism insurance a standard, non-removable element of eligible SME products. The scheme is part of the organisation’s wider efforts to improve the resilience of UK businesses and increase the availability of insurance protection against terrorism-related losses.
