Amid rising and ongoing geopolitical tensions risk managers have been told now is the time to tackle the issue of terrorism.

Speaking in Birmingham as risk managers gathered for the Airmic Annual Conference Tim Woodhouse, interim director – terrorism at Markel International, said terrorism remains a real and viable threat to businesses in the UK and globally.

He explained: “Over the past 12 months, we have seen an increase in the global terrorism threat, driven by a mix of factors, including geopolitical conflicts, the expansion of terror groups and the rise in lone wolf actors and online radicalisation.

“In April, the Joint Terrorism Analyst Centre (JTAC) raised the UK’s terrorism threat level from ‘substantial’ to ‘severe’ – meaning a terrorist attack is “highly likely” to take place. According to MI5’s report, the new threat level was triggered by a gradual increase in terrorist attacks from individuals and smaller groups across the UK and, more recently, the Golders Green stabbings which took place on 29 April.

“Looking ahead, we do not see the current rise in tensions and threats reducing in the short to medium term, as conflicts continue escalating, worldwide.”

As such Woodhouse said now was the time to work with insurers to tackle the threats to operations.

“In an increasingly unpredictable world, UK businesses must work closely with their brokers, insurance providers and coverholders to ensure they have the correct risk management protocols and cover in place as the threat landscape continues to evolve,” he added.

Woodhouse said with a spectrum, of risks, from cyber, AI and pressure on the global supply chain terrorism could not be ignored.

“There are various factors that we believe increase the threat of active assailant risks,” he explained. “The risks around shootings remain high in the US, but with social pressures increasing around the world – including cost of living pressures and rising unemployment – the potential for lone actors carrying out attacks could possibly increase.

“By their nature, active assailant attacks are harder to predict as they are not necessarily linked to a specific terrorist, religious and/or political ideology. Instead, they often derive from sudden and personal grievances, with individuals typically targeting “undefended soft” targets using everyday, easily accessible weapons to cause significant harm.

“Active assailant incidents are not fully covered in traditional terrorism policies because they are non-ideological, more unpredictable and less property-driven, which is why we would encourage risks managers to re-evaluate their insurance to ensure they have got adequate protection across the board. The active assailant coverage is broader and does not need to be tied back to a specific cause and can cover crisis management, medical, third-party liability and other costs.
“We would also expect risk managers to assess their locations and tenants for perceived threats and implement more robust risk management protocols to mitigate the increased threat levels, such as stronger access controls and test response scenarios. In addition, it is important for senior leaders to educate their colleagues on how to deal with active assailant risks – pre, during and post-event – so that they understand how to identify suspicious activity, respond to threats and implement the organisation’s security plans if an incident should arise.”