Advertise
Resources
Member, Beacon International Group, Ltd.
Pool Reinsurance Co. Ltd., the U.K. government-backed terrorism reinsurance backstop, Tuesday announced details of a series of modernization proposals that will take effect in October.
Pool Re last fall announced it would make a series of changes to the pool, which is funded by levies charged to insurers and is guaranteed by the U.K. Treasury.
Among the changes announced Tuesday are a bespoke proposition for small and medium-size insurance buyers that will offer a 40% rate discount for buyers with less than £2 million ($3.1 million) material damage sum insured. In addition, the pool will grant discounts for deductibles of between £500,000 and £1 million ($768,750 and $1.5 million), it said.
For loss limits in excess of £500 million ($768.8 million), Pool Re said it will consider rate discounts for locations where insured values are at least 20% more than the limit.
Pool Re also said it would begin to introduce revised rates that “are more reflective of the underlying risk and are based on modern modeling techniques.”
The revisions will reflect the changes to terrorism risk and exposures in the 12 years since the rating was last reviewed, Pool Re said.
“The scheme must evolve in tandem with the shifting threat facing businesses across the United Kingdom,” Julian Enoizi, CEO of Pool Re, said in the statement.
“This is a continuous process which can only be achieved through extensive collaborative discussion with our members and stakeholders,” he said. “Today’s announcement represents the culmination of the first stage of a process which will see Pool Re continue to look to enhance its offering.”.
Pool Re was set up in 1993 by the U.K. government and insurance industry, and its members include most insurers and Lloyd’s of London syndicates that offer commercial property insurance in the United Kingdom.
Manuel Valls, Prime Minister of France, has said that the country has been facing the biggest terror threat in history, reports Euronews.