NDML and NTIA call on chancellor to release Pool Re funds

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They have penned an open letter to Rishi Sunak

Specialist broker NDML and the Night Time Industries Association (NTIA) is calling on the chancellor to release excess capital from Pool Re’s £6.6bn fund.

Terrorism insurance underwriter – PoolRe has amassed a fund of £6.6bn, and NDML believes that drawing from excess capital in this fund will provide the financial breathing space necessary to break insurer deadlock and save UK businesses.

Therefore, NDML and the NTIA, the trade association for the night time industry workers are penning an open letter to Rishi Sunak, chancellor of the exchequer calling for an end to the crippling deadlock putting the survival of the leisure and hospitality industry in danger.

The open letter has been signed by NDML, and The NTIA on behalf of the entire leisure and hospitality industry and is today being sent to 11 Downing Street and HM Treasury to petition the chancellor for his support.

It is also calling on the government to provide “a long-term insurance solution to future-proof pandemics”.

It specified a scheme similar to Pool Re specifically developed to support pandemic claims could help both insurers and their clients across the country weather a similar storm in the future.

It follows the Hiscox potentially facing legal action over business interruption payouts during the pandemic.

Deadlock

Simon Mabb NDML’s managing director, said: “We’ve been trying to help and find solutions for our clients and the wider leisure industry since the very beginning of the Covid-19 pandemic. We’ve pushed and challenged insurers but have reached an unmanageable deadlock. We truly believe this is an opportunity that can future-proof pandemics, and create a solution for today, as well as a plan for tomorrow.

“This is a new idea, and something that hasn’t been done before. But we’re facing circumstances we’ve never faced before, and that calls for innovative solutions to keep businesses afloat and will save the burden of lengthy and very expensive court cases which are assembling as we speak.”

Meanwhile Michael Kill, chief executive for NTIA said: “I’ve been representing the night-time industry for many years, and I’m proud to be working with NDML to fight for the small businesses facing critical challenges right now. I think any opportunity to save people’s livelihoods should be grasped with both hands, and this proposal put forward by NDML seems to offer a glimpse of light at the end of the tunnel that will hopefully break deadlock, and support the businesses that need it most right now.

“There’s no time to waste to save our industry, and I’m urging the chancellor, prime minister and government to release these funds and save nightlife.”

Uncertain times

The letter said: “NDML has been in contact with countless businesses within the leisure and hospitality industry that have been struck hardest by the coronavirus pandemic. Many of these businesses are struggling to receive pay out on their Business Interruption Insurance policies, despite purchasing insurance in good faith to cover them for outcomes such as the coronavirus outbreak. Insurers are not treating customers fairly - damaging not only our thriving night-time economy, but the reputation of the insurance industry as a whole.

“Insurers must too find a way to survive this pandemic. It’s understandable that paying out substantial sums could cripple the insurance industry. Yet avoiding claims and remaining steadfastly unresponsive is not the answer. We’re living in uncertain times, but the industry needs clarity.

“With the government’s assistance, we are certain both the insurance industry and the night-time economy will be in a much better position to recover and thrive.”