Industry warned it cannot remain on the margins

The CEO of Britain’s leading terrorism reinsurer, Pool Re, has said the COVID pandemic has highlighted the urgent need for insurers to ensure they are at the centre of future global resilience.

Julian Enoizi (pic)  made his comments today as Pool Re launched its strategy paper entitled, “Guaranteeing Great Britain: Managing Terrorism Risk & Building Resilience”.

The launch coincides with the recent announcement by the UK government of its latest five year review of Pool Re, which will include discussion around elements of the mutual’s proposed strategic direction for the next five years.

The strategy paper examines the innovations and the development of Pool Re since the last review in 2014, as well as taking a look forward to the next five years; offering members and other interested parties an opportunity to put forward their views on how it operates and develops.

In the report’s overview Mr Enoizi said Pool Re and the industry needed to ensure it learned the lessons of the current COVID-19 crisis.

“The scale of the crisis and subsequent response has led to a growing recognition that public-private partnerships are likely to play a far greater role in the management of complex risks that threaten nations’ security and prosperity,” he explained. “COVID-19 has highlighted an accelerating divergence between businesses’ risk transfer requirements in the modern world, and the appetite or indeed practical ability of insurers to cater for them.

“Our industry urgently needs to find a way to be at the heart of the recovery from the next systemic event, rather than on the margins. By growing the commercial terrorism market and equitably transferring risk from the public to the private sector, Pool Re has demonstrated that it is possible to balance national interest with the free market objectives of industry.

“This has put us at the centre of our sector’s discussion about how to manage future coverage for pandemic risk, and other tail events which are difficult but necessary to insure, if our society is to thrive in a decade already bringing deep uncertainty and challenge.”

On Pool RE’s future Mr Enoizi, said there was reasons for real optimism.

“Nearly three decades on from the founding of Pool Re, our industry continues to rise to meet the challenges of the evolving terrorism threat. That we do so is premised more strongly than ever on the principles of collective ownership, and combined endeavour.

“That is why we have launched this paper ahead of the Treasury’s call for evidence later this autumn, as it is vital for the insurance industry to contribute to the review and to collaboratively influence the future direction of Pool Re.”