3 March 2017News

UK terror facility Pool Re boosts size of reinsurance placement

Pool Re, the UK government-backed terrorism pool, has increased its commercial reinsurance coverage to £2 billion, an increase on the £1.95 billion of coverage it previously had in place.

The placement further distances Her Majesty’s Treasury (HMT) and thus, ultimately, the UK taxpayer from any potential liability. It also protects scheme assets, thereby increasing the sustainability of the pool and strengthening the UK’s terrorism resilience for future years, the company said.

The two-layer programme, brokered by Guy Carpenter and placed with a stable and secure panel of reinsurance companies (which includes members of Pool Re as well as global re-insurers) led by Munich Re, mirrors the cover currently provided to Pool Re members and includes chemical, biological, radioactive and nuclear terrorism risk.

Steve Coates, chief underwriting officer at Pool Re, said: "This increased retrocession limit is not only evidence of Pool Re’s strategy to protect its stakeholders, but also to allow the market to write as much UK terrorism risk as they are able. We will continue to extend our protection in the future, within the boundaries of cost and counter-party security."

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More on this story

10 February 2017   Re/insurers need to work with governments and the security services to close the 'information gap' in the market around terrorism and its constantly changing threat, claimed Pool Re, the UK government-backed terrorism insurer, in its latest report on the subject.
7 February 2017   The risk of extremist groups using chemical agents has increased dramatically partly due to the military defeat of Daesh in Iraq and Syria forming the group and its ideology move into ungoverned spaces, particularly the dark web, according to a new report release by Pool Re, the UK’s terrorism reinsurance pool.