We have been made aware that Pool Re, the government backed mutual which provides terrorism coverage in the UK is in serious dispute with H.M. Treasury regarding the future cost of the protection it receives from the government. Pool Re have advised all its policyholders that it is possible that their premiums may have to rise very substantially, indeed it is possible that Pool Re will be wound up altogether in the not too distant future.
On behalf of one major client, Prospect have been able to achieve coverage in the Lloyd’s market for only 50% of their current premium from Pool Re. This suggests that any Pool Re policyholder would be well advised to seek commercial alternatives as soon as possible. It seems quite likely that market rates may increase substantially in the near future, and protection against that should be sought now.
If you are interested in pursuing this please contact David House via email(email@example.com) or 020 7977 7673.