The government-backed terrorism reinsurer, Pool Re has appointed GC Securities as its insurance-linked securities (ILS) advisor and placement agent.
The partnership with GC Securities, which is a division of MMC Securities, will allow Pool Re to further assess the options in the ILS market, such as the types of structures available, the viability of a placement and the market’s appetite for terrorism risk.
A division of Marsh and McLennan Securities, GC Securities is a business unit of global risk and reinsurance specialist Guy Carpenter and Co.
Julian Enoizi, CEO of Pool Re, said accessing the ILS market to extend terrorism protection is something the company had been looking at for some time.
Enoizi said: “One of Pool Re’s core aims is to normalise the UK’s terrorism reinsurance market and allow as much of the risk as possible to be underwritten in the commercial markets.”
“With recent legislative change in the UK, the environment is now conducive to exploring this further.”
He added: “We have significantly improved our own understanding of the risk, developing more robust modelling capabilities and gaining significant experience from the success of our reinsurance programmes.
“Now is the right time to explore the appetite of broader capital for this increasingly well understood peril.”
James Nash, president, international at Guy Carpenter, added that the company was delighted and honoured to have been appointed.
Nash commented: “Guy Carpenter has worked closely with Pool Re to assist with the development of its innovative risk model and the placement of its traditional reinsurance programme.”
“This new engagement provides an exciting opportunity to explore the benefits of structuring and placing terrorism risk with the ILS market.”
“It is also an opportunity to showcase the UK ILS industry and enhance Pool Re’s position as a pioneer in the global terrorism reinsurance market.”