Pool Re recognises that the contemporary terrorism risk environment has undergone significant changes since the company’s inception in the early 1990s. To ensure that Pool Re retains the ability to enable the market to underwrite terrorism risk for UK commercial property, as well as ensuring that its proposition is based on the current threat, it is clearly necessary for Pool Re to monitor the evolving threat landscape. This new department will enhance Pool Re’s understanding of contemporary terrorism and provide data and intelligence judgments to the company’s underwriting and modelling team. This will enable Pool Re to price the risk appropriately and identify effective mitigation measures for the ultimate benefit of its Members.
In addition to providing support to Pool Re and its Members, the new research and analysis department is already working on improving the relationship between the Government and the private sector on engagement initiatives relating to counter terrorism strategy, as well as acting as a trusted medium for the passage of information between Government and the insurance sector.
Significant resources will be dedicated to both internal and specially commissioned external research with leading centres of expertise in terrorism. As part of this research, Pool Re was pleased to recently announce a new project to model the effects of chemical, biological, radiological and nuclear (CBRN) attack methods on the UK mainland, which have been covered by the Scheme since 2003. This is a joint project between Pool Re and Cranfield University, in association with Guy Carpenter, with the aim of producing a detailed CBRN model tailored to our exposure in UK commercial property. The new research team will work closely with all our partners to ensure the latest intelligence assessments inform model development. As a precursor to the results of this project, the Pool Re research and analysis team have produced a brief assessment on the CBRN threat environment and the potential consequences to the (re)insurance market. The new team will also focus on emerging terrorism threats, whether covered by the Scheme or not. As part of this focus, Pool Re is working with the Cambridge Judge Business School on a study of cyber terrorism.
Our ultimate vision is to become the centre of excellence for terrorism research and analysis within the London insurance market, producing high-end intelligence reporting, specifically tailored to the (re)insurance market, for both our Members and a wider audience. Pool Re is currently building strategic relationships with terrorism specialists, including those in government, the private sector, academic and scientific arenas. Following on from the inaugural National Terrorism Reinsurance Pools Congress, hosted by Pool Re last year, collaboration with fellow international pools will continue to be a priority. Our thought leadership pieces, terrorism threat reports and focused research projects, such as the CBRN threat study, will be available through the Pool Re website.