Pool Re renews Guy Carpenter reinsurance broking contract
Pool Re, Britain’s leading terrorism reinsurer, is pleased to announce that, following the completion of a competitive tender process, it has awarded Guy Carpenter a renewed reinsurance broking contract for three years, with an option to run to five.
Guy Carpenter will support Pool Re in returning risk and premium to the private sector thereby distancing UK taxpayers from the risks that Pool Re 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.
Tom Clementi (pictured), 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’s best in class reinsurance is estimated to underpin around 90% of the commercial property terrorism cover in Great Britian, 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. Pool Re’s reinsurance covers property damage arising from nuclear, biological, chemical, and radiological attacks (CBRN); property damage arising from cyber-triggered terrorist losses and conventional terrorist acts; and non-damage business interruption.
Authored by Pool Re
About 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.