The members of Pool Re have unanimously approved HM Treasury’s five-year review of the entity at its recent general meeting in London.
The review of Britain’s government-backed terrorism reinsurer praised Pool Re’s work as “the world leader in terrorism reinsurance”. It also set out a collaboratively agreed scope of works to ensure the scheme’s continued success and fitness for purpose moving forward.
According to Pool Re, the scope of works allows it to explore ways in which to innovate how it returns risk to the market, including dividing risk between conventional and non-conventional terrorism and transitioning to a treaty system of reinsurance to facilitate increased risk retention by cedants. It also allows the continued development of consultancy services to members through the Pool Re Solutions division, the reinsurer said.
The members’ approval secures Pool Re’s unlimited guarantee, which HM Treasury acknowledged as remaining essential to its effective operation and to the opportunity for facilitating the future expansion of the UK terrorism insurance market. It also confirmed the following:
- The reclassification of Pool Re as an arm’s length body while ensuring it will maintain independence for the organisation’s practical operations
- The board of Pool Re remains responsible for setting the strategic direction of the company and its governance.
- The mutual’s fund, built up over many years, remains in Pool Re’s sole ownership for the purpose of the company’s reinsurance business
- The scheme rules remain fit for purpose
- Pool Re can continue to invest in risk mitigation projects essential to building the resilience of the UK against the terrorism threat
“Members have ensured the board can open a new chapter with great confidence and a clear and exciting mandate to continue its modernising journey and seek ways to return risk to the commercial market,” said Julian Enoizi, Pool Re CEO. “The scope of works agreed between Pool Re and HMT will safeguard a continued ability to innovate and has set the organisation on a path to its next exciting stage. Following the completion of my second HMT review process, I am immensely proud that HMT and Pool Re have developed such a positive working relationship and that Pool Re continues to deliver the best possible outcomes for both members and the taxpayer.”
The general meeting and the vote were Enoizi’s last actions as outgoing chief executive before leaving Pool Re.
“The UK is a world leader in terrorism reinsurance – and I am delighted that Pool Re’s board and its members have approved our five-year strategic review,” said John Glen, economic secretary to the Treasury. “The planned reforms will modernise the terrorism reinsurance market, make premiums cheaper for businesses and, most importantly, will extend the government’s unlimited guarantee so insurers have the confidence to insure against the financial costs of terrorist acts.”