The terrorist attacks in London are expected to be covered bythe nation's Pool Reinsurance Company, drawing a stark contrast tothe potential for the expiration of the federally-provided "safetynet" of the Terrorism Risk Insurance Act.
Although the attacks are a tragedy for the victims, Lehman Bros.analyst Jay Gelb said in a note to investors that insurer's lossesfrom the attacks "should be limited" because of the PoolReinsurance Company, which is also known as "Pool Re."
Established in 1993 to help insurers manage terrorism riskmostly related to the Irish Republican Army, Pool Re is agovernment program that maintains a reinsurance pool all members ofthe pool pay into. Should the losses from a terrorist attack gobeyond the pool's reserves, the British Treasury assumes the costsand recoups the funds through later charges on insurers.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
