Pool Re returns terrorism contingency cover to the market
Written by staff reporter
State-backed terrorism reinsurer, Pool Re announced this morning that is to cease reinsurance activities after the first quarter of 2019. 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 provided to insureds.
Chief executive, Pool Re, Julian Enoizi, 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.”
Pool Re 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. Most of the risks formerly ceded to Pool Re consisted of sporting events, concerts and tours.