A new research partnership between the UQ Business School and the Australian Reinsurance Pool Corporation has started with the launch of a joint report on terrorism insurance gaps in Australia, co-authored with Professor Paula Jarzabkowski at the UQ Business School and Dr Elisabeth Krull at City, University of London.
Explaining the impact of terrorism gaps on People, Property and Economic Performance, the report has found some losses from terrorism are not covered by existing arrangements, or are not covered fully or consistently. These gaps include: physical property damage caused by cyber terrorism; low business interruption insurance uptake by SMEs; Compulsory Third Party (CTP) motor insurance schemes; inconsistencies in Workers’ Compensation schemes; inconsistencies in Victims of Crime schemes and coverage of State and Commonwealth assets. The purpose of this report, in identifying these gaps, is to inform future discussions on insurance coverage, such as what risks should be covered, and by whom within the commercial or public sector.
This is the first in a series of research papers on terrorism and re/insurance to be produced by ARPC in partnership with the University of Queensland.