Pool Re publishes Retail and Hospitality Sector Risk Report


Authored by Pool Re

Our latest sector-focused risk report examines the evolving terrorist threat to the retail and hospitality sector. This report is intended to provide a better understanding of the terrorist threat to owners and managers of businesses in the sector, so they can effectively manage and mitigate the risk. It will also be useful for risk managers and risk finance advisors, who work within the retail and hospitality sector.

Our expert analysts have prepared this report using open-source analysis paired with our in-house data and a range of confidential interviews with leading experts and security directors in the retail and hospitality

Key findings:

  • The British Government is considering new legislation – a ‘Protect Duty’ – which will impose greater responsibilities on business owners and operators in the retail and hospitality sector. It will require them to do more to understand and mitigate the threat of terrorism to their businesses, particularly for those which operate in publicly accessible spaces.
  • The threat of terrorism is not exclusive to cities and major towns. Therefore, more attention should be given to potentially less secure sites in suburban and rural areas.
  • Counter Terrorism Police recently warned the easing of ‘lockdown’ measures could provide greater opportunities for terrorists to operate, potentially leading to a surge in attacks.
  • Retail and hospitality spaces will be some of the most crowded places when ‘lockdown’ eases. These represent attractive targets for terrorists using low complexity methodologies, such as vehicular and bladed weapons attacks.
  • A terrorist attack against the retail and hospitality sector is likely to cause disruption to local economies and damage public confidence. Sales and footfall could drop significantly for several months after an attack. These downside effects would be particularly acute as businesses begin to recover from the pandemic.
  • Even localised attacks can affect the wider economy, leading to a decline in consumer spending, hotel reservations and flight bookings, and, in the longer term, even Foreign Direct Investment.
  • The threat of terrorism to the sector stems mainly from Islamist extremist actors, although far-right, far-left and Violent Dissident Republicans (VDRs) have displayed the intent to target retail
    and hospitality businesses.
  • Terrorist actors will continue to use low complexity methodologies in their attacks against the retail and hospitality sector because they are quick to plan, easy to execute and hard
    to detect and prevent.
  • More sophisticated methodologies, such as bombings, remain a realistic possibility for terrorists seeking to cause mass casualties and/or significant damage and disruption.

To download the full report CLICK HERE


About Pool Re

Pool Re’s purpose is to enable the UK insurance market to offer terrorism cover to any commercial property that requires it. Central to this is the integration of Pool Re’s cover with the underlying property policy which ensures that there is no gap in the cover provided.

Pool Re was designed to insulate the taxpayer from potential financial losses arising from acts of terrorism. It has achieved this effectively, to date paying £635m in respect of 13 claims arising from certified terrorism events in the UK since our establishment. It has never called on the Government’s guarantee.

By providing foundational stability at a reinsurance level, Pool Re has created an environment for the commercial market to re-establish itself, following the market failure in 1992. This stability creates and sustains access, liquidity and confidence to generate the conditions for the private market to gradually write a growing portion of terrorism risk.

Helping UK businesses build resilience against terrorism risk is a priority for Pool Re who have developed SOLUTIONS an in-house centre of excellence created to support Members and policyholders better understand risk awareness, modelling, and management. They have also invested in a range of initiatives with Government security and intelligence agencies to provide tools such as an information sharing platform.


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