First retrocession placement of £1.8bn
An historic milestone for terrorism (re)insurance in the UK. On 02 March 2015, Pool Re announced that it had purchased reinsurance in the commercial market for the first time in its history...
An historic milestone for terrorism (re)insurance in the UK. On 02 March 2015, Pool Re announced that it had purchased reinsurance in the commercial market for the first time in its history.

Brokered by Guy Carpenter, which was instrumental in developing this landmark placement, this three year programme provides £1.8bn of cover, making it also the largest terrorism programme ever purchased by a national pool. The announcement, which marked the culmination of months of negotiations between Pool Re, Her Majesty’s Treasury (HMT), Guy Carpenter and a panel of reinsurers from across the globe, further distances HMT and the UK Tax Payer from any potential liability while also protecting the scheme’s assets. In keeping with one of Pool Re’s founding goals, it has made available a route by which the commercial market can return in a broader, more sustainable manner to terrorism insurance in the UK. In doing so, it provides a template by which terrorism pools across the globe can engage and develop mutually beneficial partnerships with the commercial market.

Development of a world first programme
The placement of the Pool Re reinsurance programme was made possible by the combined efforts, of the Pool Re Executive, led by Julian Enoizi, Chief Executive and the Guy Carpenter team managed by Nick Frankland, CEO of EMEA Operations. Before the programme could be brought to the market by Guy Carpenter, Julian and his team had to convince HMT of the merits of the purchasing of private retrocessional cover for Pool Re for the first time.

This approach ran counter to the government’s standard position on the purchase of reinsurance and represented one of the key concessions achieved as part of the renegotiation of Pool Re’s 20 year old agreement with HMT. Once this concession had been won, Guy Carpenter was able to utilise its extensive experience of global terrorism pools, to, in collaboration with Pool Re, place the programme with carriers with a minimum A- rating and an average security of AA-. The single layer programme, led by Munich Re, mirrors the cover currently provided to Pool Re members, including Chemical, Biological, Radioactive and Nuclear Risks.

An innovative programme better protecting UK Plc
The ground breaking Pool Re reinsurance programme which attached with effect from 01 March, will reinforce the Pool Re Scheme protect and increase the resilience of the members’ fund, diminishing the UK Government’s exposure and distancing the UK taxpayers from any potential liability. It has brought new premium into the market and offers a mechanism for the re-engagement of the global market in UK terrorism and the possibility of a return to a normal market. Finally it forged a template by which pools throughout the globe can increase their resilience and promote an insurance industry led risk transfer solution to issues of systemic importance.

Related Posts

Privacy Preferences
When you visit our website, it may store information through your browser from specific services, usually in form of cookies. Here you can change your privacy preferences. Please note that blocking some types of cookies may impact your experience on our website and the services we offer.