Posts Tagged ‘Reinsurance’



August 28th, 2014

US Terrorism Market: TRIPRA

Posted at 1:00 AM ET

The focus on the availability and affordability of terrorism (re)insurance coverage comes as the US House of Representatives and Senate are currently considering various changes to Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). TRIPRA expires on December 31, 2014 and the future of the federal backstop is the headline issue within the terrorism market this year given that either substantial modification or non-renewal have the potential to impact terrorism coverage in the United States. The full Senate passed their committee’s recommended version 93-4 on July 17, 2014. The House of Representatives has yet to vote on their version. Implications could also be felt outside the United States. How the expiration of TRIPRA would affect the global terrorism market remains unclear but one possible outcome could see increased pressure on other pool structures to dissolve, resulting in fragmentation towards a more open market approach.

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August 27th, 2014

Government Pools Remain Integral Risk Management Tools

Posted at 1:00 AM ET

Terrorism pools have been set up by governments in a number of countries to mitigate the withdrawal of (re)insurance capacity from the private market following significant terrorism events. The pools were established in reaction to specific threats faced within each country. Each pool generally requires a formal declaration that a terrorist event has occurred to trigger coverage.

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August 21st, 2014

The Terrorism Reinsurance Market

Posted at 1:00 AM ET

Despite the recent spike in terrorist-related activity, evolving capacity and the absence of a major terrorism loss for reinsurers have resulted in a softening terrorism reinsurance market in areas with less perceived risk. Although localized terrorism and political violence activity has impacted certain facultative programs and affected pricing and capacity at the local level, adequate terrorism capacity continues to be available in the reinsurance treaty marketplace for certain countries and territories.

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August 20th, 2014

Potential Future Risks

Posted at 1:00 AM ET

The spillover of violence from Syria to other Middle Eastern countries is a clear risk in 2014 and beyond. The conflict, and the sectarian tensions that underpin it, could destabilize a number of countries that share borders with Syria and be a catalyst for further violence in countries such as Lebanon, Iraq, Turkey and Jordan. Islamic State in Iraq and the Levant (ISIL) has already exploited conditions in Syria to its advantage in Iraq, where the level of violence is at its highest for a number of years. The group has also made significant territorial gains in Iraq recently, advancing its aim of creating a caliphate in parts of Syria and Iraq.

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August 18th, 2014

Key Battlegrounds

Posted at 1:00 AM ET

The next 18 months are likely to be an important period for Afghanistan and Pakistan in determining whether the impending withdrawal of US-led coalition forces from Afghanistan could be exploited by militant groups and a precursor to increased terrorist activity in both countries. In particular, there are fears Afghanistan could descend into civil war as the Taliban seeks to reassert its control over certain areas of the country after coalition troops withdraw, thereby recreating a sanctuary for militants similar to the one that existed before the September 11, 2001 attacks.

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August 14th, 2014

Guy Carpenter Launches MetaRisk® 7.3

Posted at 6:30 AM ET

Guy Carpenter today announced the release of MetaRisk┬« 7.3, the latest version of the firm’s premier risk and capital management decision-making tool.

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August 14th, 2014

Global Terrorist Attacks

Posted at 1:00 AM ET

According to data supplied by IHS Aerospace Defense & Security, a leading public source of defense and security information worldwide, the increasingly diverse and dispersed threat has seen terrorist activity around the world rise since 2009 (see figure below). There has also been a considerable rise in the number of fatalities from terrorist attacks during this period.

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August 13th, 2014

Domestic (Non-Islamic) Terrorism

Posted at 1:00 AM ET

Despite being overshadowed by the transnational Islamist terrorist threat since September 11, 2001, a number of destructive and costly attacks have been carried out by non-Islamic domestic groups and individuals. These include the Irish Republican Army (IRA) in the United Kingdom, Timothy McVeigh of the Oklahoma bombing in the United States and the Tamil Tigers in Sri Lanka. Such acts have resulted in significant property losses for (re)insurers. Indeed, as shown below, seven of the top ten most costly terrorist attacks (in terms of insured property losses) between 1990 and the first quarter of 2014 were carried out by these domestic groups.

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August 6th, 2014

The Evolving Terrorist Threat

Posted at 1:00 AM ET

Terrorist activity over the last 18 months has reflected the changing terrorism landscape. Several important developments have occurred since the beginning of 2013, starting with French military intervention in Mali in January 2013 to prevent the country from becoming a failed state and base for jihadist terrorists.

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July 31st, 2014

Global Terrorism

Posted at 1:00 AM ET

The global terrorism landscape has changed considerably since the September 11, 2001 attacks. During this time, improved intelligence and counter-terrorism operations around the world have weakened the threat posed to the West by the core al-Qaeda group. Military operations in Afghanistan and Pakistan and the killing of several key terrorist operatives, including Osama bin Laden, have marginalized al-Qaeda and its affiliates and prevented other spectacular attacks on the scale of September 11, 2001.

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