2026-08-25 · Source: Reinsurance News
Summary in 3 Points • Aviva has added terrorism cover as standard for eligible SME customers in Great Britain • The change follows Pool Re's SME Incentive Scheme, reducing reinsurance rates by up to 90% • The new cover applies to policies with combined property damage and business interruption sums below £10 million --- Aviva has introduced terrorism cover as a standard feature in selected digitally traded commercial products for eligible SMEs in Great Britain. This move, effective from 24 August, makes Aviva the first insurer to offer automatic terrorism protection in this way. The change is facilitated by Pool Re's SME Incentive Scheme, which reduces reinsurance rates by up to 90% for most policies. This allows Aviva to integrate the cover into core premiums with minimal cost impact. The cover applies to risks where property/material damage is selected, with a combined property damage and business interruption sum insured below £10 million. Existing business will be updated at renewal, and the cost will be included in the overall product premium.
Aviva's decision to include terrorism cover as standard in SME policies could influence other insurers in the London Market to follow suit, especially given the significant reduction in reinsurance rates through Pool Re's scheme. This move may lead to a reassessment of terrorism risk exposure and pricing strategies for SME clients. Brokers may find it easier to discuss and place terrorism cover with clients, potentially increasing the uptake of such policies. The integration of terrorism cover into standard premiums could also prompt a review of policy wordings and underwriting guidelines to ensure comprehensive coverage and risk management.