Business: Terrorism

HM Treasury written question – answered on 18th September 2017.

Alert me about debates like this

Photo of Neil Coyle Neil Coyle Labour, Bermondsey and Old Southwark

To ask Mr Chancellor of the Exchequer, whether the Government plans to require insurance companies to offer terrorism insurance on all business policies.

Photo of Neil Coyle Neil Coyle Labour, Bermondsey and Old Southwark

To ask Mr Chancellor of the Exchequer, whether the Government plans to introduce legislation to update the Reinsurance (Acts of Terrorism) Act 1993 to enable insurance companies to offer terrorism insurance beyond property damage to businesses.

Photo of Neil Coyle Neil Coyle Labour, Bermondsey and Old Southwark

To ask Mr Chancellor of the Exchequer, if he will make it his policy to introduce legislation to update the Reinsurance (Acts of Terrorism) Act 1993 to enable insurance companies to pay compensation to businesses after terrorism attacks when there is no damage to property.

Photo of Stephen Barclay Stephen Barclay The Economic Secretary to the Treasury

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

It is up to businesses to decide what risks they would like to be insured against, and for insurers to assess the extent of the risks they are willing to cover. The Government does not generally intervene in these commercial decisions by businesses and insurers.

That said, we remain in discussions with the insurance industry, Pool Re and other interested parties to ensure that the 1993 Reinsurance Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

I am due to meet the Honourable Member shortly and I am happy to discuss his questions in further detail.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.