The review is designed to ensure the UK’s terrorism
(re)insurance market continues to function effectively and
in the public interest and will set the strategic direction
for Pool Re over the coming five years.
In light of the ongoing growth and development of the
terrorism reinsurance market, the review will consider
whether the current public private risk share remains
appropriate and whether the scheme rules that govern Pool
Re should be updated.
, Economic
Secretary to the Treasury, said:
Since its inception in 1993, Pool Re has played an
important role in the growth of the terrorism insurance
market, allowing businesses to get the cover they need.
This five-year review will help us ensure that the rules,
systems and risk sharing arrangements remain in the best
interests of Pool Re and its members, the government and
the wider economy.
In February 2020 Pool Re was classified as a central
government body by the Office for National Statistics
(ONS), and the review will also ensure that Pool Re is able
to meet the requirements of this classification whilst
continuing to operate effectively.
A call for evidence will be published later this year and
the review is scheduled to conclude in Spring 2021.
- The terms of reference for the review are available
here.
- Pool Re was established in 1993 when a series of
terrorist attacks in central London led to a lack of
terrorism reinsurance cover being available on private
markets. It is a mutual company, owned by its members.
- In the event of a terrorist attack on a scale that
leaves Pool Re unable to compensate all policy holders, the
Government has committed to extend it an unlimited loan.
