File photo dated 12/10/84 of the wreckage at the Grand Hotel, Brighton, which was devastated by an IRA bomb. Photo credit: PA Wire

When the private insurance market buckled under the threat of terrorism in the 1990s, the UK government stepped in with the creation of a reinsurer focused on terror risks.

Located in the heart of the City, this company, Pool Re is backed by HM Treasury and was established when the insurance sector reduced its terrorism exposure following the IRA bombings in the UK during The Troubles.

“It was the Baltic Exchange bomb in April 1992, which was a day after John Major’s Election victory, which was the straw that broke the camel’s back,” explained Pool Re CEO Tom Clementi.

The private market withdrew its capacity for terrorism because losses were coming thick

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