Pool Re renews retrocession programme to include cyber terrorism

Cyber-terrorism

Pool Re has announced that it has renewed its retro programme and extended the cover to include material damage and direct business interruption (BI) caused by acts of terrorism using remote digital interference. The renewed cover, brokered by Guy Carpenter, has been increased by £100m to £2.1bn and has been placed with an expanded panel now comprising 47 reinsurers, with Munich Re continuing to be largest market.

The three-layer programme matches the cover provided to Pool Re member insurers, with cyber terrorism now included along with chemical, biological, radioactive and nuclear risks. This represents the most comprehensive and largest terrorism retro placement in the world.

Julian Enoizi, chief executive, Pool Re, said, “This retrocession programme represents a significant milestone for Pool Re and the culmination of months of collaboration, not only with our reinsurance panel and Guy Carpenter, but also with Cambridge Centre for Risk Studies who provided the research into cyber terrorism.

“We have sought to make the cover we provide truly reflective of the risks our member insurers face and also to future proof the scheme to ensure it represents the most comprehensive terrorism reinsurance cover possible. The appetite to engage with the programme has been exceptional and reflects the reinsurance market’s comfort with the risk and the modelling information provided by Pool Re. It also highlights their support for the pool model, which provides them with sufficient information to determine the level of capacity they are comfortable providing. We will continue to seek to extend our programme, in line with our cost and security parameters.”

James Nash, president, international, at Guy Carpenter, said “Guy Carpenter is delighted to have worked with Pool Re to not only grow the retrocession limit to £2.1bn but also extend the cover to include damage by remote electronic means. This closes a gap in coverage at a time when cyber-attacks have never been higher on the industry’s agenda of concerns."