Pool Re, the UK Government’s terrorism reinsurance scheme, has reported it successfully renewed its reinsurance broking contract with Guy Carpenter for three years, with an option to run to five.
According to the announcement, Guy Carpenter will support Pool Re in returning risk and premium to the private sector, which in turn, will distance UK taxpayers from the risks that the British reinsurer mutualises on their behalf.
This comes as Pool Re seeks to modernise its treaty arrangements, which represents the most fundamental structural shift it has seen during its thirty-year lifespan, the firm stated.
Tom Clementi, CEO of Pool Re, commented: “The reinsurance that Pool Re buys is a fundamental part of our effort to find proactive ways to return risk to the market which is, in turn, a pre-condition of the unlimited financial support we continue to receive from HMT.
“Our reinsurance programme, which is the largest terrorism reinsurance programme in the world and has included two groundbreaking ILS deals, is core to our strategy and we are delighted to have reappointed Guy Carpenter as our reinsurance broker. Guy Carpenter has significant skills and experience in this area and will continue to be an important partner for us.”
Paul Moody, CEO of Guy Carpenter, UK, added: “We are delighted to be able to continue our long partnership with Pool Re which has seen the company achieve so much with the support of our Terrorism and Public Sector focused Practices. The next few years will once again be pivotal for Pool Re and we are proud that they have chosen to work with Guy Carpenter on this next phase of their journey.”
Pool Re covers an estimated 90% of commercial property in Great Britain, protecting over £2 trillion of assets belonging to businesses of all sizes across a wide range of sectors such as real estate, retail, transport, construction and energy.
The firm’s reinsurance covers property damage arising from nuclear, biological, chemical, and radiological attacks (CBRN); and property damage arising from cyber-triggered terrorist losses and conventional terrorist acts. As well as non-damage business interruption.
