Nightclubs and restaurants and leisure and hospitality broker NDML have asked the UK Government to release Pool Re terrorism funds to support payment of business interruption claims related to the coronavirus outbreak.

NDML and the Night Time Industries Association (NTIA) say Pool Re has funding totalling more than £6.5 billion ($12.5 billion), excluding an unlimited Treasury guarantee that it receives in return for premiums paid.

“We believe it is the Government’s responsibility to work with Pool Re to support the insurance industry through these immediate challenging times,” NDML MD Simon Mabb and NTIA CEO Michael Kill say in an open letter to Chancellor of the Exchequer Rishi Sunak.

“We urge you to review the operation of Pool Re and allow its excess funds to be used to support insurers in paying out business interruption claims related to the coronavirus pandemic.”

They also call on the Government to provide a long-term insurance solution similar to Pool Re that could help insurers and clients during any future pandemics.

Mr Mabb and Mr Kill say many insurers are not treating leisure and hospitality policyholders fairly over business interruption, damaging the “night-time economy” and the reputation of the insurance sector.

While they acknowledge concerns over the crippling impact of paying out substantial sums, they say an impasse has been released in trying to find other solutions.

“Avoiding claims and remaining steadfastly unresponsive is not the answer. We’re living in uncertain time, but the industry needs clarity.”

London-based insurance leader Stephen Catlin and executives from Aon, Guy Carpenter, Willis Re and other companies last month formed a steering group to work with Pool Re in examining ways for the UK insurance industry to respond to future pandemics.