UK launches review into terrorism reinsurance fund

LONDON (Reuters) - Britain’s finance ministry has launched a review of terrorism reinsurer Pool Re, which helps insurers pay out claims on property damage caused by terror or militant attacks.

The Treasury said its latest five-yearly review was designed to ensure the UK’s terrorism reinsurance market worked effectively and in the public interest.

It will consider whether the level of risk sharing between the state and private firms is appropriate and whether its rules should be updated, given ongoing growth of the terrorism reinsurrance market, the ministry said.

The reinsurance fund, set up in 1993, acts as a backstop to insurers paying out claims on property damage and business interruption.

It is financed by the insurance industry with government backing, and pay outs depend on the British government deeming an attack to be terror-related.

Reporting by Iain Withers, editing by Sinead Cruise