The London Bombings: We Won’t Be ‘Terrorized by Terror,’ Says Blair
September 11, March 11, July 7
-dates on a calendar until 2001, 2004 and now 2005. Everyone living, and numbers yet unborn, will remember those dates. The latest terrorist attacks in Lon-don killed at least 49 people, sent over 700 to the hospital, many with life threatening injuries, shut down the city’s transport system and temporarily staggered the world’s financial markets.
Prime Minister Tony Blair rushed back from the G8 Summit at Gleneagles in Scotland shortly after the blasts occurred. He later praised the “extraordinary” composure of Londoners and the orderly way they reacted to the attacks.
“The British have a very great inner resilience,” he said. “Several of the leaders at the Summit commented to me how remarkable the British people are that they are simply not going to be terrorized by terror in this way,” he continued. “I think that we will continue with our way of life, I genuinely believe that.”
The three rush hour blasts on the Underground (Subway), which now appear to have been almost simultaneous, and one an hour later on a London bus, brought Britain’s capital to a standstill. Authorities said the toll is expected to rise.
No absolute confirmation of the source of attacks has been made, but several experts counter-terrorism experts, interviewed by the BBC, said they bore all the hallmarks of Al Qaeda.
Londoners, including Britain’s Muslim community, have provided the only answer available. Help the injured, console the families of the dead, and refuse to bend or truckle to the deluded hate mongers whose ultimate goal is to seal themselves off from all open societies. “London represents the future of humanity,” said Mayor Ken Living-stone, adding that the terrorists’ aim was to prevent that future from being realized.
An ability to absorb blows and fight back is also deeply embedded in the U.K.’s long established insurance community. Shortly after the blasts occurred the Association of British Insurers (ABI) issued a statement promising that “insurance companies will deal with any claims as quickly and sympathetically as possible.”
Stephen Haddrill, its Director General, stated: “The insurance industry will do the best possible job over the next few days and weeks following these shocking events. We are not yet in a position to estimate the scale of damage to property and the human loss. Many policies provide terrorism cover. Anyone affected should check their policy and contact their insurance company or
broker.”
Sadly, Britain has been down this road before. The attacks were not unexpected. The U.K. government began a crackdown on Muslim extremists after Sept. 11, and has also been the most visible U.S. ally in the Iraq war. Even though many oppose that war, it doesn’t mean they support the terrorists. Years of attacks by the I.R.A. have left British residents all too familiar with terrorism.
The burden on the country’s insurers is in fact lessened by those experiences. In 1993 the government established a reinsurer, Pool Re, to cover losses caused by terrorism. The U.K.’s Treasury Department describes its goal as to “ensure that terrorism insurance would continue to be available, following withdrawal of insurers from a provision of terrorism insurance for commercial property.”
Pool Re’s management is currently in discussions with the Treasury Department. Although no formal statement has been issued, press reports indicate that, as there have been no terrorist attacks in London for several years, it has plenty of money, up to 2 billion pounds ($3.5 billion) by some estimates. The majority of U.K. insurers have acquired terrorist reinsurance from Pool Re. They therefore have capped the maximum amount any one company may have to pay at 75 million pounds ($130 million) to 150 million pounds ($261 million) if there is another terror attack in the same year. However, as the claims payments are made in proportion to each individual company’s share of the U.K.’s commercial insurance market, the actual losses for any one company are reduced proportionately. Pool Re pays any losses above 75 million pounds, and should its funds, which are provided by a surcharge on premium payments, become exhausted, the Treasury would step in.
Individual companies also responded almost immediately. Three of the four biggest health and accident insurers, AXA U.K., Standard Life and Norwich Union stated they would pay all claims-up to the policy limits-under their critical illness, income protection or ASU (accident, sickness and unemployment) policies without any questions about terrorist exclusions. Lloyd’s said it faced minimal losses, mainly from business interruption and property damage claims.
Most non-U.K. companies, including Munich Re, Swiss Re and SCOR, indicated that the attacks would not have a major impact. Germany’s Allianz, the parent of the U.K.’s Allianz Cornhill, said preliminary claims estimates were between $1.2 and $10.7 million. It is a member of Pool Re.
We do indeed live in difficult times, but it’s increasingly clear that we have no choice but to resist those who would destroy us through all available means. In 1790 an Irish politician, John Philpot Curran said: “The condition upon which God hath given liberty to man is eternal vigilance.” He may not have been talking specifically about terrorism, but 215 years later his words apply all too well to the current situation.