Pool Re reduces reinsurance pricing

Pool Re has today announced the most significant reduction in its reinsurance pricing for 20 years.

The extent of the reduction will vary according to geographical location. Overall, reinsurance pricing will reduce by about 20% outside central London, and could reduce by more than 30% in non-urban areas.

The terrorism reinsurer says these decreases are likely to prompt a commensurate reduction in insurance prices, adding that Pool Re member insurers will remain responsible for setting pricing for their own policyholders.

Tom Clementi, Pool Re’s CEO, commented: “This agreement to reduce prices was one of the standout successes of the recent government review of Pool Re. We hope that it will result in lower insurance prices for policyholders, which in turn will encourage more businesses to adopt vital terrorism cover. Together with the unlimited guarantee from HMT which enables Pool Re to provide comprehensive terrorism cover, including for CBRN, we believe this significant price reduction will help provide increased resilience for businesses across the country to terrorist events.”

Alongside its enhanced modelling capability, Pool Re’s VSAT (Vulnerability Self-Assessment Tool) has been re-designed to improve navigability and user experience. Through effective use of the tool, policyholders who attain the benchmark standards and have portfolio sums insured in excess of £50m can trigger an increased discount of 10%. Discounts for different types of self-insurance, either loss limit or deductible, have also been improved.

Separately, Pool Re has also issued a new version of its underwriting manual, and is conducting member training outlining how the new rates should be applied.

The price reduction will come into effect from October 2022.

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