Sufficient capital within the commercial re/insurance markets has led Pool Re, the UK’s government-backed terrorism reinsurer, to cease reinsuring its members for the contingency cover they provide to their insureds.
Pool Re began writing the class after London was awarded the 2012 Olympic Games and the commercial market determined that it was unable to provide cover due to insufficient capacity.
In more recent years, however, the contingency market has requested that it once more retain such risks for its own account, and not reinsure them to Pool Re.
Subsequently, after Q1 2019, it will not be possible for member insurers to cede this class of business to Pool Re.
Most of the risks ceded to Pool Re consisted of sporting events, concerts and tours.
“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,” said Julian Enoizi, Chief Executive, Pool Re.
“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,” he added.