The last 12 months have seen two of the most significant enhancements to Pool Re’s cover since it was established to provide liquidity and stability to the UK commercial property market during the IRA’s mainland bombing campaign. New cover for physical damage caused by an act of cyber terrorism, combined with incoming legislation to allow the pool to cover non-damage business interruption (NDBI), together represent a new global standard of terrorism cover. Moreover, we have grown our international retrocession programme, are exploring a ground-breaking terror catastrophe bond placement, and continue to support our Members, their policyholders and the Government through a variety of risk mitigation initiatives.
Pool Re is committed to developing a scheme which goes beyond providing mere solvency to its Member insurers, offering a dynamic, comprehensive ecosystem for financing and managing terrorism risk. As this year has already shown, this ecosystem is capable of fostering both greater national resilience, and the conditions to gradually reintegrate terrorism risk within the private (re)insurance market for the first time since 1993.
Central to these core aims is a deep understanding of the contemporary threat, combined with a marked shift in our ability to model a notoriously unpredictable and complicated risk class. Since 2016, Pool Re, through its Terrorism Research and Analysis Centre (TRAC), has established itself as an expert and thought leader in the field. TRAC is designed to empower our Members and broader stakeholders with analysis of the threat landscape as it relates to the market and domestic affairs. Its quarterly Frequency reports culminate in this annual edition which, as well as qualitative insights and commentary from a range of expert contributors, showcases for the first time Pool Re’s Terrorism Database. This statistical resource will play an important role in our ongoing actuarial and distribution work, and ultimately, should enable our Members to feel sufficiently comfortable with the risk to commit increasing capacity and resource to exploit growth and capital opportunity in new markets. This will correspondingly promote the economic resilience and protective security of UK Plc, since bridging information gaps and incentivising the uptake of police-accredited risk mitigation measures becomes mutually beneficial to the public and private sectors.