Pool Reinsurance Company Limited, also known as Pool Re, was set up in 1993 by the insurance industry in cooperation with the UK Government in the wake of the IRA bombing of the Baltic Exchange in 1992.

Pool Re is a mutual reinsurer whose members comprise the vast majority of insurers and Lloyd’s Syndicates which offer commercial property insurance in the UK, with membership of the scheme affording them a guarantee which ensures that they can provide cover for losses resulting from acts of terrorism, regardless of the scale of the claims.

The Scheme, which was the first public/private partnership to cover insured losses caused by acts of terrorism, is owned by its members but is underpinned by a HM Treasury commitment to support Pool Re if ever it has insufficient funds to pay a legitimate claim. Pool Re pays a premium to the Government for this guarantee and would repay the money over time if it ever used this facility.

In the event of a loss resulting from an act of terrorism, each member must first pay losses up to a threshold that is determined individually for each insurer. If losses exceed that threshold, the insurer can claim upon Pool Re’s reserves. These reserves have been accumulated by the members of Pool Re since its inception. It is only in the event that these reserves are exhausted that Pool Re would draw upon Government support.