§ Mr. JenkinTo ask the President of the Board of Trade if he will authorise the Pool Reinsurance Co. to change the arrangements for the payment of terrorism insurance premiums for 1995.
§ Mr. Jonathan EvansI have agreed to an adjustment of the payment arrangements which will benefit policyholders if there are no large losses next year. In 1995, premiums will be payable in two instalments—60 per cent. of the annual premium will be payable at the start of the policy period, and the remaining 40 per cent. at the end of the year. The second instalment will, however, be waived if total losses notified to Pool Re during the year do not exceed £50 million. The instalment provision will be withdrawn in the course of the year in respect of subsequent new or renewed policies should losses exceed £50 million.
851WArrangements for 1996 will be determined in the light of experience.