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RESEARCH AND BRIEFINGS

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Terrorism in Australia: Countering a changing risk

 


The 2016 Global Terrorism Index1 reported a 650% increase in terrorism related deaths across OECD countries.  In Australia, more than a dozen major terrorist plots have been foiled by counter-terrorism agencies since the national threat level was raised to probable in 20142. But while the threat of terrorism in developed countries continues to climb, it is the shifting nature of these terrorism events that is pushing the insurance industry to reassess cover for these risks.

Many of the atrocities witnessed so far in 2017 - London, Manchester, Paris, Stockholm, St Petersburg, Las Vegas – all bear the hallmarks of  “lone wolf” attacks or “lone attacker” events. Typified by being small-scale, and causing high loss of life but limited property damage, these events can leave devastating effects on an organisation’s operations, assets, people and day-to-day running of the business.

The increased frequency of these incidents also brings a challenge to businesses, particularly where losses are not fully recoverable from insurance, or may fall into the “grey” area between a claimable and non-claimable loss under traditional insurances.

For Australian businesses, is the ARPC adqequate? How are insurers responding to the changing nature of terrorism risk? What coverage options are available in the insurance market?

Download the full article to read more.
 

1. Institute for Economics & Peace, Global Terrorism Index 2016
2. Federal Minister for Justice (2016, December 23), Press Conference

"Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by Jardine Lloyd Thompson Pty Ltd (ABN 69 009 098 864, AFSL 226 827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

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