UK terrorism reinsurer Pool Re may refine offer to separate risk types
The UK’s terrorism reinsurance program Pool Re is mulling options for restructuring its offer into a catastrophe treaty model to better isolate risk types and allow cedents to manage specific exposures, Pool Re has said.
Pool Re is considering dividing cover between conventional and non-conventional terrorist risks. Cedents could increase retentions for conventional terrorism, while holding stronger coverage for chemical, biological, radiological or nuclear (CBRN) or cyber-triggered terrorism.
Consultations with members are underway and run through October. Close cooperation with regulators and the UK Treasury will also be required to grease any eventual changes, Pool Re management noted.
Pool Re CEO Tom Clementi (pictured) commented: “Our twin objectives of returning more risk to the private market and driving greater awareness and penetration of terrorism cover, especially amongst SMEs, inform the proposal for a switch to a treaty reinsurance model. This should simplify the way in which our scheme operates and give members the flexibility to price terrorism cover for their policyholders as they see fit. We hope this could also encourage the reincorporation of terrorism into many standard property packages. For most non-urban risks this could likely be achieved at little or no extra cost, a change which could see many more SMEs protected against terrorism up and down the country.”
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