Last week’s bomb blasts in London have led to speculation about how the property and casualty insurance sector will deal with potential claims.

No official statement has been released by the UK Treasury since the explosions, but it is expected that property losses as a result of the bombings will see the country’s government-backed terrorism reinsurance pool, Pool Re, becoming involved.

Lloyd’s says it expects to incur only limited claims. Insurers will face a maximum payout of £75 million ($175.8 million), with any additional payments being picked up by Pool Re.

Australia’s own terrorism pool, the Australian Reinsurance Pool Corporation, was set up along similar lines to Pool Re, which receives fixed premiums from insurers to cover commercial property risks and business interruption exposures. Pool Re was formed by the British Government in 1993 after an Irish Republican Army bomb attack in London; today it has more than £3.5 billion ($8.2 billion) in reserves.

The Association of British Insurers (ABI) says the industry sees itself as able to deal with whatever claims arise. ABI Director General Stephen Haddrill says while it is not yet in a position to estimate the scale of damage to property, “insurance companies will deal with any claims as quickly and sympathetically as possible”.