Ex-Special Forces operatives help underwrite U.K. terrorism risk

When it comes to insuring against terrorism, getting the right intelligence is key, Lloyd’s says. That’s why Lloyd’s has partnered with a company that uses ex-Special Forces operatives, the insurer posted on its Web site.
To do their job effectively, underwriters need to know the threat levels associated with a risk so that they can offer the right price to cover it, the company notes on its Web site. “But to concentrate purely on the issue of terrorism would be to misunderstand the wider problems the market faces.
“The most frequent day-to-day security obstacles are theft; local disputes; civil unrest and harassment from local militant groups.”
Noting the death of al-Qaeda’s head of operations in Iraq and the kidnapping of several oil workers in the Niger Delta, Lloyd’s reaffirmed that “security continues to be a major issue for businesses.”
The company notes it has benefited from an association with former Special Forces operatives that began in 1999 when Wellington Underwriting partnered with AKE, a specialist international risk mitigation company.
“AKE combines on-the-ground intelligence with security expertise delivered by its former Special Forces operatives and academic experts,” Lloyd’s observes. “They give updates and insight to Wellington’s staff on the threats associated with the risks they are asked to cover.”
Simon Low, divisional underwriter, War and Political Risks Account at Wellington, says the relationship is a significant tool for the company’s underwriters when it comes to assessing risks.
“We have AKE staff in our offices and alongside our underwriters on the box at Lloyd’s,” Low says. “They have a great deal of contact on the ground across the world, so we can get real time information from their contacts.”
And, as AKE head of risk consultancy Iain Donald explains, there is a lot more going on than Islamic terrorism risks.
“A major concern at present is over threats to the energy market,” Donald says. “The recent kidnapping of eight workers from the oil production facility in the Niger Delta highlights the problems facing the area. However, there is a great deal of concern over the threats posed to the energy market across the globe.”