Pool Re

The Scheme, which was the first public/private partnership to cover insured losses caused by acts of terrorism,[2] is owned by its members but is underpinned by a HM Treasury commitment to support Pool Re if ever it has insufficient funds to pay a legitimate claim.

Pool Re was established following a series of terrorist incidents in the early 1990s in London and elsewhere in England related to the situation in Northern Ireland at that time.

It became necessary, therefore, to devise a new mechanism for providing this type of cover, without leaving insurers or reinsurers open to substantial losses for which there was no reliable method of calculating accurate premiums.

[3] The Pool Re scheme began operations in 1993 and has subsequently been involved in claims arising from thirteen separate terrorism incidents covering losses of over £600 million.

The most significant changes occurred after the attacks in America on September 11th 2001, which caused insurers and reinsurers to reconsider the way terrorism coverage should be offered.

The scope of its cover is designed to protect commercial property and will be offered as standard to all policyholders buying terrorism insurance from a Pool Re Member.