The UK Treasury-backed terrorism reinsurance pool has previously used catastrophe bonds to source reinsurance protection.
Pool Re has announced it has awarded an insurance linked securities (ILS) advisory contract to Aon Securities and Howden Capital Markets and Advisory.
The announcement with the two rival brokers and ILS advisors follows the completion of a competitive tender process, Pool Re said.
Pool Re is the UK terrorism reinsurance pool, through which insurers can opt to pay a share of premium, currently on a per risk facultative basis, to include terrorism coverage or add-ons, in-so-doing benefitting from the reinsurance protection of Pool Re’s UK Treasury-backed fund.
Pool Re has previously used catastrophe bonds to source reinsurance protection.
The reinsurer previously obtained an aggregate of £175m of ILS capacity from a UK domiciled special-purpose vehicle called Baltic PCC, via cat bond issuances in 2019 and 2022.
Tom Clementi (pictured), CEO of Pool Re, said: “Pool Re considers all forms of risk transfer capacity in its reinsurance programme and has appointed the advisors to assist in the evaluation of potential ILS and similar solutions for the ultimate benefit of protecting UK taxpayers.”
For a recent interview with Pool Re’s CEO, talking about its transformation towards a treaty reinsurance model, plus recent international discussions about cyber risks with other government terrorism insurance protection schemes, listen to Clementi’s recent appearance on The Political Risk Podcast.
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