UK terrorism pool has announced the most significant reduction in its reinsurance pricing for 20 years
Pool Re has announced the most significant reduction in its reinsurance pricing for 20 years. The reduction will come into effect from October 2022.
The extent of the reduction will vary according to geographical location. Overall, reinsurance pricing will reduce by approximately 20% outside Zone A (central London) and could reduce by more than 30% in many non-urban areas.
The decreases should prompt a commensurate reduction in insurance prices, although Pool Re member insurers will remain responsible for setting pricing for their own policyholders.
Improved risk models
The reductions in pricing have been enabled by the improvements in modelling capability in recent years which have improved risk understanding and facilitated price dexterity.
Policyholders who attain the benchmark standards and have portfolio sums insured in excess of £50m can trigger an increased discount of 10%. Discounts for different types of self-insurance, either loss limit or deductible, have also been improved.
Tom Clementi, Pool Re’s CEO, commented: “This agreement to reduce prices was one of the standout successes of the recent government review of Pool Re. We hope that it will result in lower insurance prices for policyholders, which in turn will encourage more businesses to adopt vital terrorism cover.
“We believe this significant price reduction will help provide increased resilience for businesses across the country to terrorist events.”
To support member insurers, Pool Re has also issued a new version of its underwriting manual, and is conducting member training outlining how the new rates should be applied.