HC Deb 17 November 1995 vol 267 c12W
Mr. Hargreaves

To ask the President of the Board of Trade if he will authorise Pool Reinsurance Co. Ltd. to change the arrangements for paying terrorism insurance premiums in 1996. [1250]

Mr. Nelson

I have agreed that premiums in 1996 will be discounted by 20 per cent., provided good claims experience continues.

The provision for paying a deposit premium of 60 per cent. of the discounted annual premium at the beginning of the policy period, with the balance becoming due at the end of the period, will be continued. As at present, the balance will be waived if good claims experience continues. The threshold of the total level of claims notified to Pool Reinsurance Co. Ltd. during the year at which the waiver would be withdrawn will be increased for 1996 from £50 million to £75 million.

The instalment provision and the discount will be withdrawn in respect of subsequent new or renewed policies in the course of the year should losses exceed £75 million.

Arrangements for 1997 will be determined in the light of experience.