Terrorism Insurance an Income opportunity or an E&O after thought?

As an MGA specialising in Terrorism Insurance we’ve worked long and hard with Brokers to introduce our Terrorism products into the market. Too often the team and I are met with “We don’t have any Terrorism policies”or “our clients don’t have any need for that”. Those responses are by far my favourite. They tell me one thing, this insurance broker hasn’t yet been given the tools they need to create a Revenue opportunity from Terrorism Insurance an opportunity which has been available to them just never explained.

For over 25 years Terrorism has been dominated by one player, Pool Re and while they should be recognised for providing the safety net to the Industry. Operating as the foremost reinsurer for the peril has inadvertently led to lack of focus from both Insurers within the pool and brokers alike. Brokers thrive off their interaction with their Insurers, the product knowledge that interaction brings and the sales support they receive which helps them explain esoteric risks to customers. Pool Re has never provided the type of support that a conventional insurer would, leading to a generation of brokers who simply see terrorism insurance as an add on product which they can offer if they remember or if their clients ask. A product which doesn’t provide any meaningful revenue and which has a poor client take up. It’s easy based upon this why we often get the responses that we do.

The terrorism insurance market today however is completely different to that many brokers have grown up with. MGA’s such as Inperio now distribute Terrorism Insurance from syndicates at Lloyd’s of London, Providing an insurance product brokers can understand, sales material they can use to engage with their clients and most importantly a commercial level of brokerage making the product worthwhile engaging with again.

As this commercial market grows brokers need to be alert to the fact that the the response “our clients don’t have any need for that” probably means one thing… you simply didn’t understand or explain the products available to your client and in doing so, both missed out on a revenue opportunity but more importantly created a E&O risk to your business in not explaining it.

Having provided terrorism insurance for the last decade there are some clear facts.

1) If you have a client with a commercial property subject to a commercial mortgage –they need terrorism insurance.

2) If you have a client that insures the peril of explosion – they need terrorism insurance.

3) If you have clients with either of these needs and you haven’t spoken to a firm like Inperio you aren’t maximising the revenue opportunities available to you nor mitigated your E&O risks.

If any of this has got you thinking I would urge you to consider the opportunity available to you, terrorism insurance is a simple way to increase your firms revenue without the need to find new clients. The team at Inperio are well placed and happy to help you start your terrorism insurance journey.