Pool Re, the UK’s terrorism reinsurer, has announced that members and HM Treasury, have approved its modernisation proposal. The proposal involves transitioning from a facultative obligatory treaty to an annual aggregate catastrophe excess of loss treaty by April 2025. This move will allow members more flexibility in underwriting terrorism-related property damage and business interruption risks. The transformation is part of Pool Re’s ongoing Scope of Works program; a response to the last UK Government Review concluded in March 2022. The approvals enable a modernised aggregate catastrophe excess of loss treaty, ensuring the scheme remains relevant and is fit for purpose in the digital age. The change aims to increase the uptake of terrorism cover, transfer risk back to the private market, and enhance the UK economy’s resilience against terrorism.