Government-backed terrorism reinsurer Pool Re has launched a specialist unit dedicated to sharing risk awareness, modelling and management information and best practice with member insurers and their policyholders.
Pool Re Solutions is made up of three teams focused on these areas, with the risk awareness group set to provide analysis, intelligence and expertise on all aspects of terrorism threats, using a broad range of data from sources such as the Global Terrorism Database.
The risk modelling team will advance its work in developing sophisticated terrorism modelling tools and techniques that can underpin better pricing and greater deployment of capacity into terrorism insurance and reinsurance.
The risk management team of Pool Re Solutions, meanwhile, a key facilitator of terrorism risk management information and techniques, will link government agencies, academia, risk professionals and the insurance industry to ensure knowledge and best practice is widely recognised and shared.
Julian Enoizi, chief executive officer of Pool Re, explained the decision to launch the new unit: “We have been working hard since 2015 on two strategic priorities. First, to increase the resilience of the UK economy to acts of terrorism. Second, to grow the industry’s understanding of terrorism risk, and consequently its ability to price, manage and package an important aspect of the country’s exposure. I believe Pool Re Solutions will represent a turning point in our industry’s relationship with terrorism risk and allow these two aims to truly converge.”
“Ultimately, the more policies that are bought, the stronger the resilience of the economy to acts of terrorism, and the more the insurance industry is able to grow and innovate.”
Enoizi continued: “As the terrorism threat continues to change and become more complex, there has emerged a corresponding need for Pool Re to support its members with an equally dynamic set of underwriting tools, technical services, training, and insight, to support the traditional provision of reinsurance cover.”
“I am confident that Pool Re Solutions will allow us to meaningfully address the information and demand gaps currently presenting challenges such as underinsurance in the SME sector, and enable Pool Re to continue to bridge and harness the best from both of their public and private partners.”
The news of Pool Re Solutions coincides with the release of the 2019 Threat & Mitigation Report, which provides a detailed analysis of the current threat landscape and awareness levels.
The report, produced by the risk awareness team, notes that terrorist groups have shown themselves to be adaptable and innovative. While the UK threat level was recently changed from ‘severe’ to ‘substantial’, the risk remains high and insurers continue to need unprecedented levels of expertise in terms of evaluating, pricing, modelling and mitigating terrorism risk.