British insurers have renewed calls for wider terrorism cover. The call came late last week at a meeting between industry leaders officials and Britain’s Economic Secretary, Ruth Kelly.

While Britain has long been a supporter of terrorism insurance cover in light of past attacks made by the Irish Republican Army – it set up a terrorism pool in 1992 – the insurers want to expand the scope of the cover to include damage from terrorist acts such as flooding, aircraft damage, property destruction and biological attacks.

The insurers are criticising the scope of 10-year-old “Pool Re” as being too limited, in that it currently only covers fire and explosions. Association of British Insurers spokesman Alan Leaman said potential losses from isolated incidents are daunting.

“There needs to be a partnership with the private sector,” he said.