Pool Re, the UK government-backed terrorism insurer has said that it will implement the recommendations from the HM Treasury’s five-year review of its work.
The reinsurer said that it would examine the bifurcation of the risk between conventional and non-conventional terrorism and transitioning to a treaty system of reinsurance to facilitate increased risk retention by cedants.
It also allows the continued development of consultancy services to members through the Pool Re Solutions division.
Julian Enoizi, Pool Re chief executive explained, “Members have ensured the Board can open a new chapter with great confidence and a clear and exciting mandate to continue its modernising journey and seek ways to return risk to the commercial market. The scope of works agreed between Pool Re and HMT will safeguard a continued ability to innovate and has set the organisation on a path to its next exciting stage.
“Following the completion of my second HMT review process, I am immensely proud that HMT and Pool Re have developed such a positive working relationship and that Pool Re continues to deliver the best possible outcomes for both members and the taxpayer.”
The approval by members also secures Pool Re’s unlimited guarantee which HM Treasury acknowledged remains essential to its effective operation and to the opportunity for facilitating the future expansion of the UK terrorism insurance market.
Angela Knight CBE, chair of Pool Re, said “This positive result is very welcome news. The support of members is critical for the future development of Pool Re, and we are delighted that they have shown their support for all the strategic proposals we agreed with HM Treasury.”
Pool Re is the insurance industry’s mutual for insuring terrorism risk in Great Britain and operates as an Arm’s Length Government Body. It was established in 1993 by the UK Government in response to the untenable losses and uncertainty caused by the Provisional IRA’s devastating bombings in financial centres in London and Manchester during The Troubles.
Economic Secretary to the Treasury, John Glen commented, “The UK is a world leader in terrorism reinsurance – and I am delighted that Pool Re’s board and its members have approved our 5-year strategic review.
“The planned reforms will modernise the terrorism reinsurance market, make premiums cheaper for businesses, and most importantly – will extend the government’s unlimited guarantee so insurers have the confidence to insure against the financial costs of terrorist acts.”
