Over the course of 2016, there has been a dramatic increase in ‘inspired’ terrorist attacks. The tragic events during Bastille Day in Nice and the Brussels bombings at Zaventem airport and Maelbeek metro station are testament to terrorists’ ability to deploy a broadening spectrum of attack methods and to target both people as well as transportation hubs. There is now, more than ever, a need for a robust and collaborative response on behalf of the world’s terrorism reinsurance pools.
Accordingly, I was delighted to be involved with the formation of the International Forum of Terrorism Risk (Re)Insurance Pools (IFTRIP) in Canberra. This is the culmination of a Pool Re led initiative that began at last year’s inaugural Congress for National Terrorism (Re)insurance Pools Congress. IFTRIP has been conceived as an independent working group serving as a discussion body for issues relevant to the providers of any kind of national/state level terrorism insurance or reinsurance solutions. It will provide a forum for the discussion of relevant developments in the insurance/reinsurance industry and allow for greater collaboration between the world’s terrorism (re)insurance entities. A charter formalising the ratification of IFTRIP has now been signed by delegates from eight terrorism pools, with six additional pools also committing their support. This represents the culmination of nearly two years of work from both the Pool Re team and our colleagues from pools across the world.
I am delighted that, as a group, we have been able to develop a shared vision of the role that reinsurance pools can play in better protecting our nations’ economies. IFTRIP symbolises a new departure which offers the potential to alter how the insurance industry protects against, and responds to, acts of terrorism around the world. The Australian Reinsurance Pool Corporation (ARPC), who hosted the Congress this year, surpassed themselves in terms of presentations and debates relating to topics including CBRN, cyber terrorism, radicalisation, modelling and the terrorism insurance gap, all of which were both thought provoking and informative. The benefits of sharing views around the evolving nature of the threat has proved invaluable in informing debate, ensuring our joint and individual continued relevance to our various stakeholders, and building resilience within our domestic infrastructures.
The third annual congress will be hosted by GAREAT in Paris next summer, ahead of which we will continue to work tirelessly with our international colleagues to build a more united terrorism insurance market. We will look to forge closer ties with the commercial market and dispel any notion that the goals of international pools and private carriers are incompatible. In doing so, we can close the gap between what we can and cannot cover and develop a more concerted response to this grave international threat.