Standard Terrorism Cover for Digital SME Products
AXA Insurance UK has joined Pool Re's SME Incentive Scheme, becoming a participating member of the initiative designed to increase terrorism insurance access for small and medium-sized enterprises. Through the scheme, AXA will incorporate terrorism cover as standard into qualifying commercial products placed by insurance brokers on its digital platforms, subject to a £10 million sum insured limit set by Pool Re. The offering includes protection against physical damage from terrorist incidents as well as Non-Damage Business Interruption cover with a £25,000 limit, which applies when businesses cannot access their premises due to police or authority restrictions following an attack, even if the property remains undamaged.
Addressing the UK Terrorism Protection Gap
Pool Re estimates that approximately 5% of UK SMEs currently purchase dedicated terrorism cover, leaving many businesses exposed to operational disruption and financial losses. Participating members in the SME Incentive Scheme receive reductions in terrorism reinsurance costs when they make terrorism insurance a standard, non-removable element of eligible SME products. Jonathan Gray, Chief Underwriting Officer at Pool Re, noted that embedding the cover within core products helps address the protection gap, while Matt Briggs, UK Technical Director for Commercial Property Underwriting at AXA, highlighted that the non-damage denial of access limit addresses situations where incidents target people rather than physical premises.