Terrorism reinsurer Pool Re, is to launch a new unit to allow insurers and policyholders access to more information over the threat to the UK.
The government-backed terrorism underwriter has launched Pool Re Solutions, a specialist unit, it says has been created to “support its member insurers and their policyholders by sharing the unique understanding and partnerships it has established over 25 years of reinsuring terrorism risk”.
It comes as Pool Re issued its 2019 Threat & Mitigation Report, which offers a detailed analysis of the current threat landscape and awareness levels.
The report, produced by the Pool Re Risk Awareness team, notes that terrorist groups have shown themselves to be adaptable and innovative. While the UK threat level was recently changed from ‘severe’ to ‘substantial’, the risk remains high and insurers continue to need unprecedented levels of expertise in terms of evaluating, pricing, modelling and mitigating terrorism risk.
Pool Re said new unit will focus on three core areas:
- The Risk Awareness team will continue to provide analysis, intelligence and expertise on all aspects of the terrorism threat, using a broad range of data from sources such as the Global Terrorism Database – the most comprehensive public record of terrorist attacks available.
- The Risk Modelling team will advance their work in developing sophisticated terrorism modelling tools and techniques that can underpin better pricing and greater deployment of capacity into terrorism (re)insurance.
- The Risk Management team, a key facilitator of terrorism risk management information and techniques, will link government agencies, academia, risk professionals and the insurance industry to ensure knowledge and best practice is widely recognised and shared.
Julian Enoizi, Pool Re CEO, (pic) commented: “Pool Re has been working hard since 2015 on two strategic priorities. First, to increase the resilience of the UK economy to acts of terrorism. Second, to grow the industry’s understanding of terrorism risk, and consequently its ability to price, manage and package an important aspect of the country’s exposure. I believe Pool Re Solutions will represent a turning point in our industry’s relationship with terrorism risk and allow these two aims to truly converge. Ultimately, the more policies that are bought, the stronger the resilience of the economy to acts of terrorism, and the more the insurance industry is able to grow and innovate.
“As the terrorism threat continues to change and become more complex, there has emerged a corresponding need for Pool Re to support its members with an equally dynamic set of underwriting tools, technical services, training, and insight, to support the traditional provision of reinsurance cover. I am confident that Solutions will allow us to meaningfully address the information and demand gaps currently presenting challenges such as underinsurance in the SME sector, and enable Pool Re to continue to bridge and harness the best from both of their public and private partners.”