Pool Re returns contingency cover against terrorist acts to the commercial reinsurance market
Pool Re has announced that as a result of sufficient capacity now existing within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism, it will cease to reinsure Members for the contingency cover they provide to their insureds...
The state-backed terrorism reinsurer began writing the class soon after London was awarded the 2012 Olympic Games when the commercial market determined that it could not provide cover due to lack of sufficient capacity. More recently, however, the contingency market has requested that it is allowed once more to retain such risks for its own account, and not reinsure them to Pool Re.
Julian Enoizi, chief executive, Pool Re, said: “The purpose of Pool Re is to provide reinsurance cover against terrorism losses where the commercial market is unable to do so in sufficient quantity to meet demand. As the commercial markets develop greater appetite and capacity, and there is therefore no longer a market failure, it is appropriate for us to withdraw and we are pleased that contingency cover is now available to insureds commercially. Pool Re will, consistent with its strategy, continue to work with the commercial market to ensure that wherever possible, cover can be returned to the market.”
After Q1 2019, therefore, it will not be possible for Member insurers to cede this class of business to Pool Re. Most of the risks formerly ceded to Pool Re consisted of sporting events, concerts and tours.