The Pool Reinsurance Company Limited, also known as Pool Re, is a mutual insurer set up by the British government with leading insurers. Pool Re has substantial reserves, and in addition HM Treasury

HM Treasury

HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...

 acts as the reinsurer of last resort for Pool Re.

Insurers in the UK can reinsure with Pool Re. their liabilities for terrorism

Terrorism

Terrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...

 claims in excess of their self insured retention. The self insured retention, i.e. the amount each insurer will pay from its own funds, varies between insurers depending on the size of their terrorism insurance portfolios.

"Pool Re" was the British governments 1993 response to the withdrawal of reinsurance cover of the UK market for terrorist attacks, following the IRA

Pira

Pira may refer to:* Pira, Victoria, locality in Victoria, Australia* Pira, Tarragona, Spain* Pira District, Huaraz Province, Peru* Pira, Peru, capital of Pira District* Provisional Irish Republican Army...

 bombing of the Baltic Exchange in 1992.

External links

• Pool Re website
• HM Treasury: Pool reinsurance arrangements: technical notice to industry
• Office of Fair Trading: Competition Act exemption for terrorism reinsurance by Pool Re