Danish FSA requests broker's help in forming terror risk pool
US RE ApS, the European subsidiary of reinsurance broker US RE, has been selected by the Danish financial supervisory authority to conduct a study of terrorism risk reinsurance capacity in the Danish market.
Reinsurers operating in the Danish market are being asked to advise the amount of reinsurance they would be willing to commit to a pool of funds covering property insurance in the event of nuclear, biological chaemical and radiological (NBCR) risks to buildings, contents, railroad vehicles, motor and marine hull in Denmark; along with loss of profit.
US RE ApS managing director Mark Lucas said that participating companies will have access to a state reinsurance guarantee limited to DKK 15bn annually on a stop loss basis.
The terrorism insurance pool will also pay an annual risk premium to the Danish state for having the guarantee available.
Findings of the study are due to the Danish financial supervisory authority on 1 October.