‘Analysis of Identified Gaps in Australia’s Terrorism Insurance Environment’
A new report by ARPC and the University of Queensland Business School has found some losses from terrorism are not covered by existing arrangements, or are not covered fully or consistently. These gaps include: physical property damage caused by cyber terrorism; low business interruption insurance uptake by SMEs; Compulsory Third Party (CTP) motor insurance schemes; inconsistencies in Workers’ Compensation schemes; inconsistencies in Victims of Crime schemes and coverage of State and Commonwealth assets. The purpose of this report, in identifying these gaps, is to inform future discussions on insurance coverage, such as what risks should be covered, and by whom within the commercial or public sector.
This is the first in a series of research papers on terrorism and re/insurance to be produced by ARPC in partnership with the University of Queensland.
You can view the full report here.
‘Cyber War and Terrorism: Towards a common language to promote insurability’
A new joint report by the International Forum for Terrorism Reinsurance Pools (IFTRIP), the UK’s terrorism pool, Pool Re, and the Geneva Association, proposes a new term, ‘Hostile Cyber Activity’ (HCA), to describe potential malicious behaviour that sits between terrorism and warfare. HCA is intended as an interim solution while the industry works towards a cross-jurisdictional consensus on a common language for nation state-backed cyber activity.
The report argues HCA may result in increased insurability as individual companies can better assess such risks and make informed decisions, resulting in clarity of coverage for insureds.
Dr Christopher Wallace, ARPC CEO and 2020 IFTRIP President, says ARPC supports research which extends terrorism thought leadership and expertise.
You can read the full report here.
Masterclass: ‘Pandemic and Insurance’
In this masterclass, Professor Paula Jarzabkowski, Professor of Strategic Management at the Cass Business School, City University of London, explores the implications of the COVID-19 pandemic for future insurance coverage, including public/private risk-sharing mechanisms. Professor Jarzabkowski is an expert in (re)insurance markets. She is developing a research paper commissioned by ARPC through the University of Queensland which examines insurance market gaps in relation to terrorism.
You can view the masterclass here.
Insurance Risk Assessment of Cyber Terrorism in Australia
In 2020, Australian Reinsurance Pool Corporation completed a major research study on the threat of cyber terrorism in Australia. The study, titled ‘Insurance risk assessment of cyber terrorism in Australia’ identifies and explores current and prospective threats, plausible scenarios as well as the practicalities of extending insurance coverage to include cyber terrorism in Australia.
ARPC commissioned Cambridge Centre for Risk Studies, at the University of Cambridge in the United Kingdom, and the Organisation for Economic Co-operation and Development, based in France, to undertake the research with ARPC.
To access a copy of the research, please complete our digital form here.
ASPI publishes its Counter-Terrorism Yearbook 2020
The Australian Strategic Policy Institute (ASPI) is an independent, non-partisan think tank that produces expert and timely advice for Australia’s strategic and defence leaders. The 2020 edition of ASPI’s Counterterrorism Yearbook considers three emerging themes that are matters of concern in the current security environment:
- the demise of the Islamic State (IS) ‘caliphate’
- the increased threat from right-wing extremism, and
- the role of technology in propagating violent extremist ideologies.
For more information on ASPI and to access the Yearbook, visit https://www.aspi.org.au/report/counterterrorism-yearbook-2020
Mind the gap
The Australian terrorism pool still excludes cyber terrorism. This article, featuring an interview with ARPC CEO, Dr Christopher Wallace, outlines some findings of ARPC’s cyber terrorism research project with the Organisation for Economic Co-operation and Development (OECD) and the University of Cambridge’s Centre for Risk Studies. This article appeared in the February-March 2020 issue of Insurance News Magazine.
Commercial property at risk from cyber attacks
ARPC identified cyber terrorism causing physical damage to commercial property as an area requiring investigation and commissioned the OECD and the University of Cambridge’s Centre for Risk Studies to provide insights into the threat in Australia. This article, which outlines some research findings, appeared in the April 2020 issue of Asia Insurance Review.
The complexity of terrorism pools
This article features a wide ranging interview with Dr Christopher Wallace, ARPC CEO, about how terrorism pools like ARPC keep up to date with current and emerging terrorism trends. The article appeared in the January 2019 issue of Asia Insurance Review.
ARPC and Institute of Economics and Peace Research Paper
Terrorism in the OECD – A Research Project funded by the Australian Reinsurance Pool Corporation
Trusted Expert in terrorism reinsurance. This brochure showcases ARPC’s vision, strategic priorities, and financial and performance highlights as at 30 June 2019.