Pool Re will no longer offer contingency cover against terrorist acts
UK terrorism mutual reinsurer Pool Re will no longer offer its members reinsurance coverage for contingency cover they provide to their insureds because sufficient capacity now exists within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism.
Most of the risks of this nature ceded to Pool Re involve the coverage of sporting events, concerts and tours. Pool Re will cease offering this service after the first quarter of 2019, after which, it will not be possible for members to cede this class of business to Pool Re.
The UK government-backed terrorism reinsurer began writing the class of business soon after London was awarded the 2012 Olympic Games when the commercial market determined that it could not provide coverage due to lack of sufficient capacity.
However, the mutual said that, more recently, the contingency market has requested that it is allowed once more to retain such risks for its own account, and not reinsure them to Pool Re.
Julian Enoizi, chief executive, Pool Re, said: “The purpose of Pool Re is to provide reinsurance cover against terrorism losses where the commercial market is unable to do so in sufficient quantity to meet demand. As the commercial markets develop greater appetite and capacity, and there is therefore no longer a market failure, it is appropriate for us to withdraw and we are pleased that contingency cover is now available to insureds commercially.
“Pool Re will, consistent with its strategy, continue to work with the commercial market to ensure that wherever possible, cover can be returned to the market.”
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