Government opens call for evidence in Pool Re review
Her Majesty’s Treasury (HMT) has announced a call for evidence as it continues its latest five yearly review of Pool Re, Britain’s leading terrorism reinsurer. In the announcement, John Glenn, Economic Secretary to the Treasury, comments that the review will help to “ensure that the rules, systems and risk sharing arrangements remain in the best interests of Pool Re and its members, the government, the taxpayer and the wider economy”.
This call for evidence covers “how the guarantee HMT extends to Pool Re impacts the market for terrorism (re)insurance and how any amendments to the terms of the guarantee and the rules that govern HMT’s relationship with Pool Re would impact the availability, affordability and take-up of terrorism insurance”.
HMT is requesting responses to a number of questions from those involved in the terrorism (re)insurance markets. The call for evidence will run for six weeks until 22 November 2020.
Julian Enoizi, chief executive officer of Pool Re, said: “This review is an important part of our close cooperation with the government, which has enabled Pool Re’s success as a private partnership. The call for evidence presents a crucial opportunity for the market to contribute to the review and collaboratively influence the future direction of Pool Re. I strongly urge members, stakeholders and others involved with the terrorism (re)insurance market to respond to the questions being posed.”
At the end of September, Pool Re-released its own forward looking strategy paper entitled, “Guaranteeing Great Britain: Managing Terrorism Risk & Building Resilience”.
Authored by Pool Re
Pool Re’s purpose is to enable the UK insurance market to offer terrorism cover to any commercial property that requires it. Central to this is the integration of Pool Re’s cover with the underlying property policy which ensures that there is no gap in the cover provided.
Pool Re was designed to insulate the taxpayer from potential financial losses arising from acts of terrorism. It has achieved this effectively, to date paying £635m in respect of 13 claims arising from certified terrorism events in the UK since our establishment. It has never called on the Government’s guarantee.
By providing foundational stability at a reinsurance level, Pool Re has created an environment for the commercial market to re-establish itself, following the market failure in 1992. This stability creates and sustains access, liquidity and confidence to generate the conditions for the private market to gradually write a growing portion of terrorism risk.
Helping UK businesses build resilience against terrorism risk is a priority for Pool Re who have developed SOLUTIONS an in-house centre of excellence created to support Members and policyholders better understand risk awareness, modelling, and management. They have also invested in a range of initiatives with Government security and intelligence agencies to provide tools such as an information sharing platform.
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