Pool Re cuts reinsurance pricing

Pool Re has announced the most significant reduction in its reinsurance pricing for 20 years. The reduction will come into effect from October 2022.

The extent of the reduction will vary according to geographical location. Overall, reinsurance pricing will reduce by approximately 20 percent outside Zone A (central London) and could reduce by more than 30 percent in many non-urban areas. These decreases are likely to prompt a commensurate reduction in insurance prices, although Pool Re member insurers will remain responsible for setting pricing for their own policyholders.

The reductions in pricing have been enabled by the significant investment Pool Re has made in its modelling capability in recent years which will continue to improve risk understanding and further facilitate price dexterity in the future.

Tom Clementi, Pool Re’s CEO, commented: “This agreement to reduce prices was one of the standout successes of the recent government review of Pool Re. We hope that it will result in lower insurance prices for policyholders, which in turn will encourage more businesses to adopt vital terrorism cover. Together with the unlimited guarantee from HMT which enables Pool Re to provide comprehensive terrorism cover, including for CBRN, we believe this significant price reduction will help provide increased resilience for businesses across the country to terrorist events.”