
Pool Re is the main provider of terrorism in the UK. The cover is constantly evolving and the following video provides their current thinking. There are two key foundation stones of the Pool Re scheme. Firstly, both Pool Re, and by extension its members, must accept all eligible risks for terrorism cover and cannot decline an otherwise eligible risk.
The quid pro quo for that is that both members of Pool Re and their policyholders, must insure all of their
risks through Pool Re. For policyholders this is ‘all or nothing’ and means that if they have a portfolio of, say 10
properties, they can either insure all 10 for terrorism, or none at all.
This is a fundamental feature of Pool Re and has been in place since 1993 and effectively means that the mutual
fund cannot be selected against and be only exposed to high risk terrorism exposures. Where policyholders
do wish to select and only insure certain locations, this option is available in the alternative market. Please contact us if you wish to know more. More information is available in the BIBA terrorism guide.