Since the COVID-19 crisis was first labelled a pandemic on March 11 by the World Health Organization (WHO), little else has been on the minds of the global insurance market. Yet whether it’s been through potential fire or flood damage to uninhabited businesses or the prevalence of ransomware attacks on remote-working individuals during the pandemic, there has been no opportunity to dismiss the other risks that a business may be facing.
Brokers and their clients may have understandably had a reduced focus on the ongoing threat of terror attacks, according to David Heeney (pictured above), terrorism underwriter at Fiducia MGA. However, they should be careful not to take their eye off the ball. Fiducia, which was established about four years ago, operates in a variety of niche sectors from terrorism to marine to liability and its terrorism offering was developed in conjunction with the growing demand for an alternative to the Pool Re facility.
“Brokers are crying out for quick responsive answers and guidance and I think that’s where we really set ourselves apart,” he noted. “We don’t have any online facilities where we try to force our brokers down an online route to contact us. It’s very much about picking up the phone, send in your details via email and we’ll get back as quickly as possible.”
The pressing challenges and concerns of the coronavirus pandemic have made it difficult to highlight the continued need for terrorism cover, he said, and the business is mindful of the fact that its brokers are extremely busy dealing with inquiries from their clients. The most prevalent issue for the insurance sector during the pandemic has been that of business interruption policies, wherein some insurers are now facing class-action lawsuits due to allegedly ambiguous policy wordings.
“A lot of brokers’ time now is focused on really trying to look after their clients’ interests, quite rightly, so we’re reluctant to keep pushing our products, including terrorism,” Heeney said. “They’ve just got enough on their plates at the moment between dealing with [their clients’ concerns] and also trying to get hold of clients who are not trading because of the current situation. So, where we are trying to focus now is more on the cost-saving aspects available because we understand that’s so crucial at the moment, with so many businesses struggling to trade.”
For businesses currently struggling financially or looking to review their terrorism insurance policies to save on their premiums, there is the option of looking to alternatives which allow them to pick and choose their specific locations or to access a first-loss limit which is not available through Pool Re, Heeney noted. This is where alternative terrorism providers can help out brokers’ clients.
“I don’t think the terrorism threat is particularly [present] at the moment,” Heeney said. “While it’s always lurking in the background, we have simply not seen any increased activity from any terrorist organisations which are looking to cause physical damage to property. But… though our brokers have a lot going on at the moment, it is important for us to keep reminding them that if clients are under pressure financially then there are alternatives within this coverage.”
