Pool Re increases reinsurance coverage in new 3-year deal
Pool Re, the mutual reinsurer that provides terrorism cover for commercial property in the UK, has renewed the reinsurance cover purchased in 2015 for a further three years.
The renewed cover, which now includes an additional layer, provides £1.95 billion of commercial reinsurance, compared with £1.8 billion previously.
Pool Re said the placement further distances Her Majesty’s Treasury (HMT) and the UK tax payer from any potential liability and also protects scheme assets, thereby increasing the sustainability of the pool.
The two-layer programme, placed with a secure panel of reinsurers (which includes global reinsurers as well as its members) led by Munich Re and brokered by Guy Carpenter, mirrors the cover currently provided to Pool Re members, including chemical, biological, radioactive and nuclear risks.
Steve Coates, chief underwriting officer of Pool Re, said: “I’m pleased to announce that Pool Re has bought an additional layer of reinsurance from the commercial market, above the cover that incepted last March.
“This is an important step which reflects an increasing appetite in the reinsurance market for UK terrorism risk and brings us closer to our continued goal of re-engaging global capacity in the provision of terrorism cover in Great Britain. It also further diminishes the UK Government’s exposure and distances the UK taxpayers from any potential liability.”
He added: “We will continue to examine ways to secure more capacity from insurers and re-insurers, so as to increase the scheme’s resilience and to ensure that Pool Re only provides capacity that the market is unable to.”
