Pool Reinsurance Company is set to introduce its first terrorism risk catastrophe bond in a deal with Baltic PCC Limited worth £75m ($97m). The company, which is backed by the UK government, is launching the product in an attempt to source additional terrorism risk retrocession from a diversifying source of risk capital. The new product, called Risk Resilience Bond, will be available for sale on 1 January and will allow customers who have been affected by terrorist attacks or other major events such as natural disasters to take out The deal reportedly covers the UK mainland and is set to last for three years beginning in March.
Pool Reinsurance Company is set to introduce its first terrorism risk catastrophe bond in a deal with Baltic PCC Limited worth £75m ($97m). The company, which is backed by the UK government, is launching the product in an attempt to source additional terrorism risk retrocession from a diversifying source of risk capital. The move follows an announcement last year that Pool Re would begin to include cyber terrorism reinsurance cover as part of its renewal of the program. The deal reportedly covers the UK mainland and is set to last for three years beginning in March.