Matthew Lerner 1/7/2019 10:49:00 AM
Source: Business Insurance
Citing ample capacity in existing markets, Pool Re said it would cease writing terrorism contingency cover previously offered to its members, beginning after the first quarter. In a statement Monday, Pool Re said “as a result of sufficient capacity now existing within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism,” Pool Re “will cease to reinsure Members for the contingency cover they provide to their insureds.” The state-backed terrorism reinsurer began writing such cover shortly after London was awarded the 2012 Olympic Games because the commercial market said it did not have the capacity, the statement said, adding that most of the risks previously ceded to Pool Re involved sporting events, concerts and tours. Commercial contingency markets now wish to retain such risks and not reinsure them to Pool Re, the statement said.