The Pool Re scheme was set up in 1993 by the insurance industry in cooperation with the UK Government.
Pool Re is a mutual reinsurer whose members comprise of insurers and Lloyd’s syndicates which offer commercial property insurance in the UK mainland, with membership of the scheme affording them a guarantee which ensures that they can provide cover for losses resulting from acts of terrorism, regardless of the scale of the claims.
The Scheme, which is recognised as a leading example of public/private partnership, is owned by its members but is underpinned by a HM Treasury commitment to support Pool Re if ever it has insufficient funds to pay a legitimate claim. Pool Re pays a premium to Government for this guarantee and would repay the money over time if it ever used this facility.
In the event of a loss resulting from an act of terrorism, each member must first pay losses up to a threshold, which is determined individually for that insurer. When losses exceed that threshold, the insurer can claim upon Pool Re’s reserves, which now stand at approximately £5.5billion. These reserves have been accumulated by the members of Pool Re since its inception. It is only in the event that these reserves are exhausted that Pool Re would require Government support.
In the past 20 years, the Pool Re fund has paid out following 13 separate terrorism incidents covering losses of over £600m.
Chief Executive Julian Enoizi discusses the changing nature of terror and the massive transformation facing Pool Re – changes so large that the terrorism pool might disappear altogether. Click here to read more.
The Pool Re team has been shortlisted for the Reinsurance Transaction of the Year Award at the 2015 Insurance Insider Honours event. Click here to read more.
Further information is available at www.poolre.co.uk or follow us on Linkedin
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