Last November Pool Re widened its cover to include material damage and direct business interruption caused by acts of terrorism using a cyber trigger. Now its retrocession programme has been renewed and extended to cover the same, matching what is provided to Pool Re member insurers.
Brokered by Guy Carpenter, the renewed retro cover has also been increased by £100 million to £2.1 billion. In addition, it has been placed with an expanded panel, as a total of 47 reinsurers are now on board.
The UK’s government-backed terrorism reinsurer described the three-layer programme as the world’s largest and most comprehensive terrorism retro placement. Aside from cyber terrorism, also covered are chemical, biological, radioactive, and nuclear risks.
“This retrocession programme represents a significant milestone for Pool Re and the culmination of months of collaboration, not only with our reinsurance panel and Guy Carpenter, but also with Cambridge Centre for Risk Studies who provided the research into cyber terrorism,” said Pool Re chief executive Julian Enoizi. “We have sought to make the cover we provide truly reflective of the risks our member insurers face and also to future-proof the scheme to ensure it represents the most comprehensive terrorism reinsurance cover possible.”
Enoizi added that the appetite to engage with the retro programme has been exceptional. He said Pool Re will continue to seek an extension, in line with its cost and security parameters.
“Guy Carpenter is delighted to have worked with Pool Re to not only grow the retrocession limit to £2.1 billion but also extend the cover to include damage by remote electronic means,” commented James Nash, president for international at Guy Carpenter. “This closes a gap in coverage at a time when cyberattacks have never been higher on the industry’s agenda of concerns.”
