Introduction

The Pool Re scheme has been set up by the insurance industry in co-operation with the UK government so that  insurers can continue to cover losses resulting from damage caused by acts of terrorism to commercial property in Great Britain.

Insurers that participate in the scheme offer terrorism cover as part of the relevant commercial policies they issue when their policyholders request them to do so. Each insurer must pay losses up to a threshold, which is determined individually for that insurer. When losses exceed that threshold, the insurer can claim upon reserves accumulated by the insurance industry on a mutual basis within a separate company, Pool Reinsurance Company Limited (“Pool Re”). Should terrorism claims exceed these reserves, Pool Re can, in turn, draw funds from government to enable it to meet its obligations in full, regardless of the scale of losses.