Release Pool Re funds plea for BI claims

Specialist insurance broker, NDML and the Night Time Industries Association have called on the government to release excess funds from terrorism re/insurer Pool Re to support insurers in paying out coronavirus business interruption claims.

The open letter to chancellor, Rishi Sunak, signed by Simon Mabb, managing director of NDML and Michael Kill, chief executive of the NTIA says: “We urge you to review the operation of Pool Re and allow its excess funds to be used to support insurers in paying out business interruption claims related to the coronavirus pandemic. By working with both the insurance industry and Pool Re, we are confident the government can find a viable solution to help businesses across both sectors."

In the letter it is pointed out that the Pool Re terrorism fund currently stands in excess of £6.5bn, not taking into account the unlimited HM Treasury guarantee facility. It points out that Pool Re pays a substantial premium to HM Treasury for its guarantee and is now classified as a government entity. "Therefore, we believe it is the government’s responsibility to work with Pool Re to support the insurance industry during these immediate challenging times."

The letter also calls on the government “to provide a long-term insurance solution to future-proof pandemics. A scheme similar to Pool Re specifically developed to support pandemic claims could help both insurers and their clients across the country weather a similar storm in the future."

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