Crowded places are – and will remain – attractive targets for international and “home-grown” terrorists and so an important element of any counter-terrorist strategy is to create safer places and buildings that are less vulnerable to a terrorist attack. This is especially so for leisure, hospitality, retail industries.
Cost of terrorism
Companies still significantly underestimate their potential exposure to the related risks and losses, especially to the increasing indirect risks from terrorism elsewhere. For example, the Paris attacks in November 2015 paralysed Brussels’ tourism and retail sectors some 320 kilometres away and had a lasting impact on the city’s commerce.
Many UK companies are unaware – or have underestimated – the financial losses that could occur if a key supplier or business partner (in the UK or internationally) were unable to operate for a significant period of time.
The human and financial cost of terrorism is growing rapidly. The Institute of Economics and Peace has estimated that the direct cost of terrorism to the global economy in 2014 was $52.9 billion – a ten-fold increase since 2000 – and the indirect costs at $105 billion.
Practical steps
Companies can’t predict all possible threats to their business. However, by working through a range of potential scenarios and consequences it is possible to make informed judgements and set appropriate priorities.
The following process is an effective way for companies to think about improving the management of these risks:
Step one: identify the threats. Understanding terrorists’ intentions and capabilities, what they might do and how they might act, is a crucial first step to assessing potential threats.
Step two: decide what you need to do to. Priorities should fall under the following categories: people, physical assets, information and process (supply chains and the operational process required to support the business).
Step three: identify measures to reduce risk. Companies should introduce new proportionate measures that: deter would-be terrorists; aid detection of intrusion; and delay any attempts at intrusion.
Step four: continually review your security measures. Security and contingency plans should be rehearsed and reviewed on a regular basis to ensure they remain accurate, workable and up-to-date.
Terrorism Insurance
Since the IRA attack on the Baltic Exchange in London in 1993, the UK established a mutual government reinsurer, Pool Re, to provide a backstop to insurers that offer terrorism cover on business property and business interruption policies. This has worked well and despite £600 million of claims from 13 separate incidents there has been no use of public money.
However, the increasingly interconnected nature of global commerce means that UK organisations are not only exposed to events in the domestic market but many also have international exposures through the global reach of their business activities. Companies can also be impacted via a change in consumer behaviour in the aftermath of a terrorist attack.
New threats and new risks require new insurance solutions and one insurer is now offering a contingent Loss of Attraction cover, for example.
As always if you have any questions regarding your business insurance please contact Forum Insurance on 020 8909 2899
Managing Director Barry Mamtora said, “I am delighted Amish has chosen to join the family business and take it to the next stage. We have celebrated 25 years in business and I have every confidence Amish will maximise insurer partnerships and leverage our buying power to deliver the best risk management solutions for our clients.”
A number of key achievements have driven Forum’s growth in the past few years including the expansion into petrol forecourts where they have gained significant market share.
This appointment hails the next phase of growth for Forum Insurance.
Amish Mamtora said, “I am delighted to be appointed director at such an exciting time. The opportunity to continue Forum’s success story and utilise technology to our advantage is key to my plans for the future. It is an exciting time for independent broking.”
Forum Insurance are developing an ongoing client consultation programme, ensuring our diverse client base are best placed to understand the individual risks to their business.
Amish continued, “As a family business we share a common passion for excellent customer service and look forward to working even closer with our clients, delivering traditional personal service. This opens up some very exciting opportunities for our employees."
The Metropolitan Police have warned of an annual rise in burglary and robbery at a time where Asian communities travel to attend events. Gold is highly desirable to criminals due to the speed that it can be exchanged for large sums of cash. Here are our top tips for keeping your jewellery safe:
- Ensure that there is adequate safe protection in your home
- Have a professional valuation for all high value items
- Photograph all items of jewellery
- Avoid wearing high-value pieces in areas or places that you don’t know
- Turn rings around to conceal diamonds and stones and cover high-value watches with long-sleeved clothing when in busy, public areas
We wish you and your family a Happy Diwali and a Prosperous New Year!
If you have any questions regarding your insurance please contact Forum Insurance on 020 8909 2899.