Pool Re names Aon Securities and Howden Capital Markets as ILS advisors

Pool Re names Aon Securities and Howden Capital Markets as ILS advisors | Insurance Business Canada

Reinsurance

Pool Re names Aon Securities and Howden Capital Markets as ILS advisors

Reinsurer has previously utilized cat bonds for reinsurance protection

Reinsurance

By
Kenneth Araullo

Pool Re, the UK’s leading terrorism reinsurer, has awarded an insurance-linked securities (ILS) advisory contract to Aon Securities Limited and Howden Capital Markets and Advisory. This decision follows the completion of a competitive tender process.

Tom Clementi (pictured above), chief executive officer of Pool Re, stated that the reinsurer considers various forms of risk transfer capacity in its reinsurance program and has appointed the advisors to explore potential ILS and similar solutions. The goal is to enhance protection for UK taxpayers.

Pool Re has previously utilized catastrophe bonds to secure reinsurance protection, successfully obtaining £175 million of ILS capacity through UK-domiciled special-purpose vehicle Baltic PCC Ltd. via cat bond issuances in 2019 and 2022.

In July, Pool Re also partnered with Clearwater Analytics, a provider of SaaS-based investment management, accounting, reporting, and analytics solutions. The partnership involves transitioning from a custodian-based model to Clearwater’s investment accounting and reporting platform.

This move aims to streamline and modernize Pool Re’s finance and investment processes, providing efficient monthly close processes and enabling timely and accurate data across departments. Clearwater’s platform is also designed to help Pool Re adapt to changing market dynamics and HM Treasury reporting requirements.

Earlier in May, insurtech firm Optalitix announced a partnership with Pool Re to implement a new end-to-end treaty and claims management system, featuring full auditability and enhanced reporting capabilities.

The new system, built on Optalitix’s Quote platform, is intended to provide Pool Re with a more effective approach to writing new business, managing claims, and communicating with its insurance members.

Earlier this year, Pool Re also received approval from its members and the HM Treasury to overhaul the current Pool Re scheme.

The proposed modifications, set to take effect in April 2025, maintain the core principles and coverages of the scheme but introduce enhanced flexibility for members in underwriting terrorism-related commercial property damage and business interruption risks.

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