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Written question asked by Neil Coyle (Labour) on Wednesday, 7 February 2018, in the House of Commons. It was due for an answer on Tuesday, 20 February 2018. It was answered by John Glen (Conservative) on Tuesday, 20 February 2018 on behalf of the Treasury.

Insurance: Terrorism

Question

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.

Answer

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.

That said, I understand the concerns that businesses have raised about terrorism insurance cover for business interruption losses that are not linked to damage to commercial property and want to do everything we can to help. The Treasury remains in discussions with the insurance industry, Pool Re and other interested parties to ensure that the Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

We are actively exploring options, including legislation, to address this and will confirm our next steps in due course.

Secondary information

Type
Written question
Reference
127140
Session
2017-19
Grouped for answer
Yes
Subjects
Insurance Terrorism
Legislation
Reinsurance (Acts of Terrorism) Act 1993
Link
View this Written question on www.parliament.uk