The commercial insurance and reinsurance market is now deemed to have enough capacity to carry the risk
Pool Re has today announced it will no longer reinsure members for contingency cover it provides to their insureds.
The state-backed terrorism reinsurer began writing the class soon after London was awarded the 2012 Olympic Games due to concerns the commercial market could not provide cover due to lack of sufficient capacity.
But Pool Re has deemed that there now is sufficient capacity within the commercial insurance and reinsurance markets to cover such contingency losses arising from acts of terrorism. It will have ceased providing the cover by the end of March.
Julian Enoizi, chief executive of Pool Re, said: “The purpose of Pool Re is to provide reinsurance cover against terrorism losses where the commercial market is unable to do so in sufficient quantity to meet demand.
“As the commercial markets develop greater appetite and capacity, and there is therefore no longer a market failure, it is appropriate for us to withdraw and we are pleased that contingency cover is now available to insureds commercially.
“Pool Re will, consistent with its strategy, continue to work with the commercial market to ensure that wherever possible, cover can be returned to the market.”
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