The attacks targeting the French satirical magazine Charlie Hebdo have highlighted some of the weaknesses of the British compensation fund Pool Re, in charge of terrorism risks as numerous voices have criticized the shortcomings of the current coverage system.
Pool Re can provide coverage only for property damage. With the significant increase in the risk of terrorist attacks in Europe and especially in Britain, brokers are pointing to the fact that companies could find themselves deprived of any coverage in the event of such an attack whereby losses without damage to property may be sustained: this may be the case, for instance, if a whole neighborhood is put in quarantine.
Pool Re also indemnifies operating losses in the event of damage to property. No change is expected regarding the scope of coverage despite the recent attacks in Paris.