Pool Re will no longer reinsure contingency losses arising from acts of terrorism amid sufficient capacity within the commercial insurance and reinsurance markets to provide cover.
In fact, according to the state-backed terrorism reinsurer, the contingency market has recently requested that it be allowed to retain the risks for its own account instead of ceding the class to the reinsurance pool.
“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,” noted Pool Re chief executive Julian Enoizi.
“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.”
The exit is effective in the second quarter of 2019.
Enoizi added: “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.”
