The second international meeting on terrorism risk insurance co-organised by the OECD and the ARPC (Australian Reinsurance Pool Corporation) looked at these questions, reviewed the current status of terrorism risk insurance programmes and markets in different countries, and provided a forum for policy dialogue on current and emerging challenges between the heads of terrorism insurance programs worldwide and renowned experts from the public sector, industry (insurers, reinsurers, brokers, risk modelling firms, risk managers) and leading research institutions.

 

Following the events of September 2001, the OECD developed a large portfolio of activities on the financial management of terrorism risk. The first international first international conference on terrorism risk insurance was organised in 2010. Today, two thirds of the 34 OECD countries rely on the insurance market to manage terrorism risk (as do nearly all non-OECD countries). A third of OECD countries have established a national programme of terrorism insurance to financially cover the risk of terrorism. Some of these schemes are very recent, such as the Danish terrorism insurance scheme. Some are up for renewal and will thus be assessed. Meanwhile, recent geopolitical events impact the terrorism threat at local and global level. It is time for a new review.

 

Meeting documents

> Programme
> Biographies

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SESSION 1: PROGRESS IN TERRORISM RISK MODELLING

Chair: Milan Simic, Managing Director, AIR

The economics of business interruption insurance against terrorism

Adam Rose, Coordinator for Economics, Center for Risk and Economic Analysis of Terrorism Events (CREATE), USA (presentation)

Predicting the unpredictable: probabilistic risk estimation for terrorism risk in Germany

Dirk Harbrücker, Member of the Executive Board, Extremus, Germany

Joachim Weihe, Deputy Head Germany 1, Head Health & Life Reinsurance, Aon Benfield Germany (joint presentation)

Progress in terrorism risk modelling and its possible implications

David Matcham, CEO, ARPC, Australia (presentation)

New insights into the NBCR terrorism modelling : CCR approach for the French insurance market

Laurent Montador, Senior Vice President, CCR, France (presentation)

The Insurability of political violence

Robert Muir-Wood, Chief Research Officer, Risk Management Solutions (presentation unavailable)

Counter-terrorism constraints on terrorism pool losses

Gordon Woo, Catastrophist, Risk Management Solutions (presentation)

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SESSION 2: INSURING AGAINST TERRORISM: A RISK MANAGER PERSPECTIVE

Chair: Franklin Nutter, President, Reinsurance Association of America, USA 

Adapting terrorism risk insurance solutions to multinational activities

Rémi Pendaries-Issaurat, Risk Manager, Accor (presentation)

Miguel Luque Herrán, Director of Insurance, Repsol (presentation)

The challenge of protecting critical infrastructures

Michael Schuller, Corporate Finance Director & Head of Investor Relations, Eurotunnel (presentation)

David Gasson, Secretary General, International Union of Aerospace Insurers (IUAI) (presentation / additional material)

Elizabeth Holton, Consultant, Risk Management & Insurance, International Air Transport Association (IATA) (presentation)

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SESSION 3: LATEST EVOLUTION OF THE TERRORISM THREAT

Chair: Erwann Michel-Kerjan, Professor and Managing Director, Center For Risk Management, The Wharton School, USA; Chairman, Board of the OECD International Network on the Financial Management of Large-Scale Catastrophes

Trends in terrorism threat in the Netherlands

Niek Bos, Manager, Dutch Terrorism Risk Reinsurance Company (NHT)

Laurens van der Varst, Advisor at COT Institute for Crisis Management, Netherlands (presentation unavailable)

The evolving global terrorism threat: a view from Spain and across the Mediterranean

Fernando Reinares, Senior Analyst on International Terrorism at Elcano Royal Institute and Professor of Political Science at King Juan Carlos University, Spain (presentation)

The terrorism threat in 2012: global perspective

Bruce Hoffman, Director of the Center for Security Studies, Director of the Security Studies Program and Professor at Georgetown University’s Edmund A. Walsh School of Foreign Service, USA (presentation)

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SESSION 4: EVOLUTION OF NATIONAL TERRORISM SCHEMES AND PRIVATE (RE)INSURANCE SOLUTIONS

Chair: Alberto Monti, Professor of Law at Institute for Advanced Study IUSS Pavia

Terrorism insurance in the US and the future of TRIA

Franklin Nutter, President, Reinsurance Association ofAmerica, USA (presentation)

The evolution of GAREAT: what is at stake

Laurent Montador, Senior Vice President, CCR, France (presentation)

Christiane de Bondy Soper, Secretary General, GAREAT, France (presentation)

Pool Re: A 20^th anniversary review

Steve Atkins, Chief Executive Officer, Pool Re, UK (presentation)

Insuring terrorism risk in India

Bhavani N. Narasimhan, Manager, Indian Terrorism Pool, General Insurance Corporation of India (presentation)

Terrorism (re)insurance market trends: global perspective

David Flandro, Managing Director, Global Business Intelligence, Guy Carpenter (presentation)

Peter Buetikofer, Head of Property Centre Reinsurance, Swiss Re (presentation)

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SESSION 5: ARE WE PREPARED TO FACE EMERGING CHALLENGES

Chair: Steve Atkins, Chief Executive Officer, Pool Re, UK

Insuring cyber and nuclear terrorism risks: where do we stand?

On cyber terrorism: Bruce Schneier, Founder and Chief Technology Officer of BT Managed Security Solutions (presentation unavailable)

On insurance of nuclear terrorism risks: François Vilnet, President, APREF, France (presentation)

Terrorism and operating losses across borders: interdependencies and suppliers default

Dirk Harbrücker, Member of the Executive Board, Extremus, Germany (presentation)

Christiane de Bondy Soper, Secretary General, GAREAT, France (presentation)