The US government has disappointed the Reinsurance Association of America (RAA) by announcing it will not introduce a Pool Re-style system in the US, writes Christine Seib.
It has instead proposed a public-private arrangement, in which the government would shoulder decreasing amounts of terrorism losses over the coming three years, before phasing the system out.
But underwriters have warned that UK insurers must have access to the arrangement if they are to remain competitive.
Hiscox director Robert Childs said foreign insurers operating in the UK could cede business to Pool Re and that it was vital UK insurers are given the same rights in the US.
"If they don't allow us in, then we won't be able to offer comparable cover to our US clients, because there won't be an alternative private reinsurance market at a reasonable or competitive price," he said.
"Most standard reinsurances will exclude terrorism."
Beasley Furlong underwriter Ian Harrison said property insurers needed to be included to maintain a level playing field.
"If the rules are written so foreign insurers are not allowed to participate, foreign insurers would be at a disadvantage in the US property market," he said.
RAA spokeswoman Sandra Lafevre said arrangements with the government would be made on a company-by-company basis, rather than as an industry group.
"It's not what we hoped for, but we hope we can work with Congress and the administration to get something acceptable," she said.
The US government has not yet said whether non-US insurers would be able to access the scheme.
Neither Lloyd's nor the Association of British Insurers (ABI) have officially lobbied for the inclusion of UK insurers.