Call for Contributions for Inaugural edition of JTCI
Terrorism is an increasingly prevalent threat to life and property, generating losses globally at increasing rates. Although terrorism is not a new phenomenon, recent events have shown an evolution in terrorism and methods employed by terrorist groups. There has been a shift from conventional terrorism, to a series of smaller coordinated attacks designed to maximise loss of life. There have also been increases in CBRN and cyber capabilities. Terrorism is a niche area of insurance and thus it is only superficially covered in insurance literature.
As 2016 marks the 15-year anniversary of 9/11, the costliest terrorist attack (both in terms of lives lost and financial damages), the timing is appropriate to launch a Journal of Terrorism Insurance. This is a central and open repository for news and knowledge specifically focused on terrorism insurance. The material is for educating readers in the subject, informing them of new developments, and assisting them in making judgments on terrorism underwriting, broking, and risk management.
Call For Contributions
For the inaugural edition of the Journal of Terrorism Insurance, we are seeking contributions on broad areas affecting terrorism insurance such as (but not limited to):
- CBRN (non-conventional terrorism).
- Capital market solutions: ILS, securitisation, catastrophe bonds, ILWs.
- Cyber, and the related perils of SR&CC and war.
- Drones and new technology.
- Islamic finance (takaful/retakaful) in this area.
- Terrorism modelling issues and advancements.
- Evolutions of the terrorism threat, and its interdiction.
- Losses, and analysis of key terrorism events.
- The property and life market’s approaches and participation in terrorism insurance.
Contributions can be made to email@example.com. We welcome news, reviews, commentary, and research articles. As a guide, research articles can be up to 5,000 worlds, research reports or feature articles can be 10,000 in length, and news/reviews should not exceed 2,000 words. Footnotes should adhere to the Oxford University referencing style.
RMS Blog- Launching a New Journal of Terrorism and Cyber Insurance
As a step towards redressing the imbalance in available terrorism literature, a new online journal, The Journal of Terrorism and Cyber Insurance, has been established; its launch is to coincide with the fifteenth anniversary of 9/11. The journal has been welcomed and supported by global terrorism insurance pools, and its launch will be publicized at the annual terrorism pools congress in Canberra, Australia, on October 7, 2016.
Ask the Experts
(Raveem Ismail and Scott Reid)
Judging future Political Violence frequency. One of our editors, Dr Raveem Ismail, with co-author Scott Reid have a high level writeup in the UK's The Actuary, of a first Structured Expert Judgement elicitation specifically for forward looking judgement of Political Violence frequency.
A Counterfactual Analysis of CAT Modelling
A counterfactual perspective enables you to consider what has not yet happened, but could, would, or might have under differing circumstances. By adopting this approach, the risk community can reassess historical catastrophe events to glean insights into previously unanticipated future catastrophes, and so reduce catastrophe “surprises.”
Australian Leadership and the Australian Reinsurance Pool Corporation
(Rachel Anne Carter)
Rachel Anne Carter speaks to Victor Perton about Australian leadership. She focuses on aspects of Australian leadership which differentiates Australian leaders from those around the world. In particular she focuses on how many Australian leadership employ a flat line structure where egalitarianism and features of a meritocracy are employed. She also focuses on the human aspects of leadership, the purpose being to encourage and inspire individuals rather than simply assessing leadership based upon the monetary impact of a leader on the bottom line.
Rachel then outlines how a number of the senior executives at the Australian Reinsurance Pool Corporation are amongst the best leaders globally.
The JTCI Welcomes its first Sponsor: PCS (Verisk Analytics)
The Journal of Terrorism & Cyber Insurance (JTCI) is pleased to announce Property Claims Services (PCS, a Verisk Analytics company) as its first sponsor. PCS has been an essential part of the (re)insurance market, enabling innovative solutions in the risk transfer space.
Tom Johansmeyer, PCS: "The need for greater focus on improved risk and capital management relative to terror and cyber has only gained momentum over the past year, and the trajectory seems likely to continue. While there’s nothing better than a conversation with a client, the Journal of Terrorism and Cyber Insurance provides a crucial forum for the exchange of thought leadership and commercial insights that can help (re)insurers allocate capital more effectively and – more importantly – communities and businesses recover from an event. The role of the insurance industry is to protect the insured and society. The JTCI should provide a forum to help advance that mission."
Rachel Carter and Dr Raveem Ismail, JTCI: "We are pleased that the Journal's mission has been affirmed by PCS and we welcome their support. Our endeavour is to ensure decision makers in the industry for Specialty risks have the best possible information and methods."
Fake news, media hype, reality & the actual threat of terrorism
(Rachel Anne Carter)
Recently there has been an increasing focus on violent activities...what would traditionally be categorised as criminality. However, there has been an increasing tendency to brand these events as ‘terrorism’ as the event unfolds and before all of the facts can be ascertained and a judgement made upon factual evidence. The use of social media and other media sources contributes in part to the premature categorisation of these events and creating unnecessary hype. The use of language, labelling coupled with unsubstantiated or grossly inaccurate facts before an event has been analysed can result in misinformation and heighten the public fear unnecessarily. The difficulty is thus separating the fake news, the over exaggerations and untruths from what unfolds.
Published in City Security Magazine
Dealing with terror: Is it time for a new insurance model?
(Tom Johansmeyer and Ted Gregory)
Across the globe the shape of terrorism seems to be changing. Although historically focused on “trophy targets” with events that cause significant physical damage, the latest attacks tend toward the active assailant model.These events can cause plenty of terror but without the investment and operational risk needed to cause extensive physical damage. In the end, this approach to terror is often far more effective — particularly for dollars spent by the perpetrating group — than the traditional large-scale attacks that cause physical destruction.
In the United States, there hasn't been successful high profile attack with an aim to cause physical damage since September 11, 2001. Active assailant incidents, however, have been more common. Shootings in San Bernardino, California, and Orlando, Florida, demonstrate that the evolution of terror has finally reached U.S. soil.
On an Optimal Threshold for Terrorism Industry Loss Aggregation
(Tom Johansmeyer and Raveem Ismail)
Industry insured loss aggregation consists of a few basic components, but they’re crucial to the process. The three basic ingredients are reliable data sources comprising sufficient share of an event to enable extrapolation of the full market loss, a set of rules (methodology) and a way to define events, and a threshold below which events aren’t investigated.
Terror Risk Transfer: The Evolution of the Attacks and Why the Market Needs to Grow
(Rachel Carter and Tom Johansmeyer)
Notwithstanding a rapid transformation of the terrorist threat, coupled with an evolution in how attacks are carried out, the terrorism insurance market remains relatively stagnant. In other areas of the commercial world, there are clear movements towards innovation and thought leadership in terror modeling, tracking, and response. The insurance industry, however, isn’t developing as quickly – even despite the prevalence of activity. Yet the industry has the capacity for change – and to deliver meaningful positive impact to people and communities in their time of need. Developing and distributing a parametric solution for terror events with low physical damage could be an important first step toward addressing the new and evolving terror threat.
Artemis Monte Carlo Executive Roundtable 2016
Tom Johansmeyer, PCS (Verisk)
Steve Evans, Artemis
Rick Welsh, Sciemus
Quentin Perrot, Willis Capital Markets & Advisory
John McIlwaine, AIR Worldwide
Laura Taylor, Nephila Capital
Neil Strong, Securis Investment Partners
Niklaus Hilti, Credit Suisse
Gregory Richardson, TransRe
David Priebe, Guy Carpenter
Kurt Karl, Swiss Re
Julian Enoizi, Pool Re
Hotel Terror Exposure Just Got Bigger
The nature of terror threats is evolving and so should the considerations for corporate risk and insurance managers, are parametric triggers are the answer?
News & Insights
As 2016 marks the 15-year anniversary of 9/11, the costliest terrorist attack (both in terms of lives lost and financial damages), the timing is appropriate to launch a Journal of Terrorism & Cyber Insurance. This is a central and open repository for news and knowledge specifically focused on terrorism insurance. The material is for educating readers in the subject, informing them of new developments, and assisting them in making judgments on terrorism underwriting, broking, and risk management.
The cat in the (aluminum foil) hat: cyber and other specialty risks to drive ILS growth
An investment in innovation to bring new risks to market is crucial to the future of the ILS sector.
Cyber risks and government pools. Too soon?
(Rick Welsh, Tom Johansmeyer and Alex Mican )
With penetration of cyber risk re/insurance increasing and seen as a huge opportunity for the market, questions turn to how best to back-stop the growth of this emerging line of business, with the help of government support or through private initiatives, including using the capital markets?
Stop waiting for a cyber cat bond
(Tom Johansmeyer and Rick Welsh)
It’s time to stop waiting for a cyber catastrophe bond to magically appear in the ILS market and work to make this happen. Cyber risk modelling techniques and our understanding of catastrophe level cyber risk exposure is now at a place where the insurance-linked securities (ILS) market can become the next major risk capacity provider.
Insuring against the Terrorism Risk: Is 'The Silo Mentality' A Limiting Factor?
(Rachel Anne Carter)
The focus of the insurance industry in providing terrorism insurance cover against terrorism risks for large scale property damage and associated limitations is not a negative reflection on the insurance industry. Instead, what this illustrates is a systemic problem: insurers need information in order to create new product offerings and to price them in an actuarially sound manner. Insurers need information on terrorism threats, data from terrorism losses, research, information and knowledge yet currently this information is separated within corporate confines. This silo effect has dwarfed the development of new products and meant that where cover is offered by the commercial market generally loss limits are low and due to the nature of insurance, there is a period between a claim is made, losses are adjusted and compensation is paid out. The advent of the increase in number and frequency of events has awakened the industry to look beyond what is currently offered and start to consider new options...but a solution is needed to the information vacuum.