The role of international cooperation in mitigating the financial cost of terrorism risk and sharing best practice knowledge on insurance coverage options is critical, according to Dr Christopher Wallace, Australian Reinsurance Pool Corporation (ARPC) CEO.
Dr Wallace recently addressed the inaugural International Forum of Terrorism Risk Re (Insurance) Pools (IFTRIP*) Conference in Paris held on 27 and 28 June 2017. The forum was attended by 14 member terrorism pools and was hosted by French pool GAREAT, the Fédération Française de l’Assurance (FFA) and the French State owned reinsurer CCR.
“Terrorism is a global issue and the nature of threats is constantly evolving. We must remain at the forefront of global efforts to meet the challenges, including appropriate coverage and mitigation strategies,” said Dr Wallace.
“Maintaining excellent working relationships with our global terrorism pools so we can share knowledge, insights and best practice, is a key part of this,” he said.
Other global terrorism pools confirmed the value of global connections in meeting the terrorism challenge.
François Vilnet, IFTRIP chairman, said: “No country in the world, however well protected, can consider itself immune from terrorism and the need for international cooperation to prevent, mitigate and better cover these horrific incidents has never been more acute. The level of knowledge and risk management developed in national terrorism pools and schemes can form part of this response”.
Julian Enoizi, CEO of the United Kingdom’s Pool Re said: “By bringing together the collective expertise of the world’s terrorism (re)insurance pools we can continue to drive forward innovation in terrorism coverage and look to ensure that our industry is able to support our nations against an evolving terrorist threat”.
Topics discussed at the Conference included:
- the role of international cooperation;
- emerging challenges;
- the changing nature of the threat, hyper-terrorism (non-conventional terrorism) and possible mitigation of exposure;
- the gaps in terrorism insurance coverage and current market responses;
- the role of Public Private Partnerships in risk management and terrorism (re)insurance;
- innovation in modelling and alternative methods of transferring terrorism risk; and
- the current status of the various pool models.
For media inquiries, please contact ARPC CEO Dr Chris Wallace on (02) 8223-6777.
*Background The International Forum of Terrorism (Re) insurance Pools (IFTRIP) was formally ratified at the ARPC-OECD Pools meeting hosted by Australian Reinsurance Pool Corporation (ARPC) in Canberra in October 2016. The organisation was founded with the goal of promoting initiatives for closer international collaboration, including the sharing of expertise and experience, to combat the potential for major economic loss, resulting from terrorism. The following institutions are members, observers or invitees of IFTRIP: Australia (ARPC); Austria (GRAWE); Belgium (TRIP); Denmark (FINANSTILSYNET); France (GAREAT, CCR); Germany (Extremus); India (GIC); Israel (ITC); Namibia (NASRIA); Netherlands (NHT); Russia (RATIP); South Africa (SASRIA); Spain (CCS); USA (TRIP); UK (Pool Re).