The legislative amendment set out in the Counter-Terrorism and Border Security Act 2019 is now being realised, with Pool Re announcing the placement of its new retrocession programme which covers non-damage business interruption (NDBI) losses.
Incepted on July 05, the programme features a limit of £40 million. The terrorism reinsurer said the cover was placed by Guy Carpenter with Liberty Specialty Markets as the lead market and the likes of Munich Re and AXA XL as other key partners.
Made possible by the development of in-house NDBI modelling capability, the placement also returns the majority of risk to the private market in line with the mutual’s strategy towards the market’s normalisation.
“This is the culmination of our longstanding efforts to both enable Pool Re to cover non-damage business interruption and to return as much of the risk to the private market as possible,” stated Pool Re chief underwriting officer Steve Coates.
“Our actuarial team, in collaboration with Guy Carpenter and counter-terrorism specialists, developed an in-house model for NDBI, which allows both us and our reinsurers, to quantify and evaluate the risk.”
Commenting on the retro programme, Guy Carpenter international chief executive James Nash said they are honoured to have been asked to represent Pool Re in bringing “this important extension of coverage” to the British market.
“It was also an opportunity for us to showcase our expanded offering combining the established terrorism team at JLT Re with the Pool Re team at Guy Carpenter,” added Nash.
