§ Mr. WatersonTo ask the President of the Board of Trade what agreements have been laid before Parliament under the Reinsurance (Acts of Terrorism) Act 1993; and if he will make a statement.
§ Mr. Neil HamiltonThe agreement with Pool Reinsurance Company Ltd. was concluded, with the consent of the Treasury, on 30 July and was laid before Parliament on 30 July. Updated versions of schedules 5, 6 and 7 to the agreement—the forms of the legal contracts between Pool Reinsurance Company and its members—were laid before Parliament today. The changes are not substantive but serve to simplify the administrative arrangements between Pool Reinsurance Company Ltd. and its members.
My right hon. Friend the Secretary of State is also undertaking, with the consent of the Treasury, to guarantee a credit facility which has been obtained by Pool Reinsurance Company Ltd. from a group of banks to ensure the financing of the arrangements. The guarantee together with a copy of the credit facility was also laid before Parliament on 30 July.
Following the conclusion of the agreement, Pool Reinsurance Company Ltd. was authorised on 30 July to carry on reinsurance business in accordance with the Insurance Companies Act 1982.
The authorisation of the company, the conclusion of the agreement and the granting of the guarantee, together with the credit facility, mark the completion of the establishment of the arrangements announced by my right hon. Friend on 21 December. The arrangements established enable the Secretary of State to act as reinsurer of last resort are effective from 1 January 1993. Industry and commerce in Great Britain can now be confident that firm arrangements exist to provide for insurance against terrorist damage, provided they take out such insurance.