British state-backed reinsurer has £4.5 billion to cover Olympic Games terror-related losses
Pool Re, the British state-backed reinsurer which covers commercial property losses from terror attack-related activities, has £4.5 billion ($7.327 billion) of assets to cover the Summer Olympic Games. Pool Re said it had no plans to jack up premiums for the event. If the damage from bombings or other terror-related incidents were to cost more than that amount, the British taxpayer, under the Pool Re structure, would step in to cover the difference. Pool Re was set up in the 1990s when the U.K. government was worried that the terror campaign pursued by Irish militant groups could make London property uninsurable and damage the national economy.