POOL RE BOARD TO MEET THIS WEEK TO DISCUSS HM TREASURY PROPOSAL…

Pool Re’s board is due to meet early this week to discuss government proposals to increase the premium paid by the pool’s members to HM Treasury. The existing agreement between HM Treasury and Pool Re allows the government to take 10% of the premium in exchange for the retrocession agreement that sees HM Treasury act as insurer of last resort for the pool. Pool Re chief executive, Julian Enoizi, wrote to Pool Re’s members last Thursday warning of the proposed changes which will see the government take a considerably higher percentage of premium. A report in the Financial Times suggested this could be as much as three times the existing 10%. Market sources who have spoken to Insurance Day on the matter have said the developments were unexpected, particularly in light of the government’s recent revision of the UK terror threat from substantial to severe.