…WITH STANDALONE MARKET POISED TO CAPITALISE ON OPPORTUNITIES IF PROPOSAL GOES AHEAD

In the event the government proposals are expected, the move would likely open up opportunities for the standalone terrorism market, according to Lockton’s David Cheales. Cheales, who heads up the war and terrorism unit at Lockton, said potential scenarios should the proposals go ahead would include Pool Re being disbanded or rates being put up substantially to cover the additional payments to HM Treasury. “Pool Re would likely be sustainable as some clients would have to buy Pool Re for nuclear, chemical, biological and radiological cover,” he said. “But there are members of Pool Re who would potentially think twice about being members if they were missing out on a great opportunity to write standalone business. “This could be a fantastic opportunity for those in the standalone market who are not members of Pool Re to write business currently written by the pool.”