By Rebecca Delaney

March 10 - (The Insurer) - The UK's Pool Re said on Monday that it is seeking to increase terrorism cover in commercial property insurance for SMEs, as it launched a market consultation on the plan.

Terrorism insurance among UK SMEs is low, with only 4% covered. Pool Re has launched the consultation to explore the reintegration of cover as a standard feature within commercial property policies for the sector.

"We are seeking to reduce these significant protection and expectation gaps, and thereby bolster the resilience of the UK economy, by offering our members a more attractive pricing proposition in respect of their SME portfolios," said Tom Clementi, CEO of Pool Re.

Pool Re’s new reinsurance scheme, which launches on April 1, is designed to make it simpler and more cost-effective to reincorporate terrorism cover into SME property policies.

"If this can be achieved, it would return the market to the position before Pool Re was established in 1993, when terrorism cover was a standard feature of commercial property package wordings," Clementi added.

Running until the end of April, the consultation will collect feedback from Pool Re’s members, (re)insurance intermediaries, policyholders, industry bodies and the wider insurance market.

Earlier this month, Pool Re completed the placement of a new retrocession programme with a record limit of 2.75 billion pounds ($3.47 billion), confirming a report by The Insurer last month.

The placement is structured as an aggregate excess of loss cover. It provides 2.75 billion pounds of cover, up from the 2.4 billion pounds secured in 2022 under a three-year deal.

The placement, brokered by Guy Carpenter, featured participation from more than 60 international reinsurers, up from 52 previously. Hannover Re and the Fidelis Partnership were among those providing pricing guidance.