Captives Play Major Role in Managing Terrorism Risk in the UK

Captive Uses, Trends & Innovations | Alan Fleming | Chairman | Airmic

Although several countries have government-backed catastrophe insurance programs, Alan Fleming of Airmic talks about how captive insurance companies were pivotal to terrorism risk management in the United Kingdom. Owing to the conflict with the Irish Republican Army, terrorism coverage was already a significant part of the insurance market, but in the face of an attempt by the market to back out of covering this exposure, Mr. Fleming and others in the captive insurance community stepped in to help form a government-backed reinsurance vehicle (Pool Re), which is accessible to captives and where terrorism exposure is funded in the context of captive risk.