Government-backed terrorism reinsurer Pool Re believes it can offer a new solution for UK insurers and businesses in the battle against terrorism risk – something it has aptly named “Pool Re Solutions”.
The idea is to establish a specialist unit that offers support to member insurers and policyholders that acts as an effective “centre of excellence” – sharing the knowledge it has built up over the last 25 years and helping to enhance risk awareness and risk management. Broadly, it is made up of three pillars:
- A risk awareness team: It provides intelligence, data and analysis on terrorism threats from sources including the Global Terrorism Database.
- A risk modelling team: It works on developing terrorism modelling tools aimed at enhancing the deployment of capacity into terrorism reinsurance and underpinning better pricing.
- A risk management team: Seen as a “key facilitator” of terrorism risk management it links government agencies with risk professionals and insurers to ensure best practices are shared.
“Pool Re has been working hard since 2015 on two strategic priorities,” said Pool Re CEO Julian Enoizi. “First, to increase the resilience of the UK economy to acts of terrorism. Second, to grow the industry’s understanding of terrorism risk, and consequently its ability to price, manage and package an important aspect of the country’s exposure. I believe Pool Re Solutions will represent a turning point in our industry’s relationship with terrorism risk and allow these two aims to truly converge. Ultimately, the more policies that are bought, the stronger the resilience of the economy to acts of terrorism, and the more the insurance industry is able to grow and innovate.
“As the terrorism threat continues to change and become more complex, there has emerged a corresponding need for Pool Re to support its members with an equally dynamic set of underwriting tools, technical services, training, and insight, to support the traditional provision of reinsurance cover. I am confident that Solutions will allow us to meaningfully address the information and demand gaps currently presenting challenges such as underinsurance in the SME sector, and enable Pool Re to continue to bridge and harness the best from both of their public and private partners.”