Pool Re renews retrocession programReprints
Pool Reinsurance Co. Ltd., the U.K. government-backed terrorism reinsurance backstop, renewed its retrocession program and extended the cover to include material damage and direct business interruption caused by acts of terrorism using remote digital interference.
The renewed cover, brokered by Guy Carpenter & Co. L.L.C., has been increased by £100 million to £2.1 billion and has been placed with an expanded panel now comprising 47 reinsurers, with Munich Reinsurance Co. continuing to be the largest market, Pool Re said in a statement.
The three-layer program matches the cover provided to Pool Re member insurers, with cyber terrorism now included along with chemical, biological, radioactive and nuclear risks.
“We have sought to make the cover we provide truly reflective of the risks our member insurers face and also to future proof the scheme to ensure it represents the most comprehensive terrorism reinsurance cover possible,” Julian Enoizi, chief executive, Pool Re, said in the statement. “The appetite to engage with the program has been exceptional and reflects the reinsurance market’s comfort with the risk and the modeling information provided by Pool Re. It also highlights their support for the pool model, which provides them with sufficient information to determine the level of capacity they are comfortable providing. We will continue to seek to extend our program, in line with our cost and security parameters.”
In November, Pool Re had announced it would extend its cover to include material damage and direct business interruption caused by acts of terrorism using a cyber trigger, starting in April 2018.
“Guy Carpenter is delighted to have worked with Pool Re to not only grow the retrocession limit to £2.1 billion, but also extend the cover to include damage by remote electronic means,” James Nash, president, international, at Guy Carpenter in London, said in the statement. “This closes a gap in coverage at a time when cyber attacks have never been higher on the industry’s agenda of concerns."
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. In 2015, the mutual insurer implemented a series of changes to modernize the pool.