ARPC€¦ · Cyber Terrorism Research Paper ARPC Terrorism Risk Insurance Seminar Globally...
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ARPC Expert advisor on terrorism reinsurance $13.4b AVAILABLE FOR CLAIMS Protecng over 835,000 insured property assets $3.065b OF REINSURANCE SECTOR FUNDING FOR CLAIMS With 60+ reinsurers parcipang $10b GOVT GUARANTEE Provided by the Australian Government 5% p.a OF PREMIUMS, IN OPERATING EXPENSES Cost effecve, with 22 staff $426m IN RETAINED ASSETS Sustaining the pool for first losses $178.9m p.a IN PREMIUM INCOME Covering over 230 cedants Cyber Terrorism Research Paper ARPC Terrorism Risk Insurance Seminar Globally connected through IFTRIP Level 23/1 Market Street, Sydney, NSW, 2000 GPO Box Q1432, Queen Victoria Building, NSW, 1230 KEY HIGHLIGHTS KEY FACTS AS AT 30 JUNE 2018 230 cedants (insurer customers) Mul-year retrocession in place Physical Protecve Security Treatments for Buildings Handbook VISION To be an effective provider of terrorism risk insurance that facilitates private participation, supports national resilience, and reduces losses arising from catastrophic events caused by terrorism When you reinsure with ARPC, your liability for terrorism is transferred to us for eligible risks and you do not have to hold capital above your retenon. As a consequence, there is minimal risk (if you are in the ARPC Scheme). ARPC underpins the financial stability of the Australian economy following a declared terrorist incident. While large scale aacks are sll occurring around the world, there has been a trend towards lower complexity aacks perpetrated by lone actors. ARPC is recognised as a global expert in terrorism reinsurance, has deep insurance and reinsurance experse, and strong relaonships with (and is owned by) the Australian Government. ARPC is part of the financial assistance and economic recovery phase of the Australian Government’s Naonal Counter-Terrorism Plan. WHY REINSURE WITH US? Email: [email protected] Website: arpc.gov.au
Transcript of ARPC€¦ · Cyber Terrorism Research Paper ARPC Terrorism Risk Insurance Seminar Globally...
A RPC Expert advisor on terrorism reinsurance
$13.4bAVAILABLE FOR CLAIMSProtecting over 835,000 insured property assets
$3.065bOF REINSURANCE SECTOR FUNDING FOR CLAIMSWith 60+ reinsurers participating
$10bGOVT GUARANTEEProvided by the Australian Government
5% p.aOF PREMIUMS, IN OPERATING EXPENSESCost effective, with 22 staff
$426mIN RETAINED ASSETSSustaining the pool for first losses
$178.9m p.a IN PREMIUM INCOMECovering over 230 cedants
Cyber Terrorism Research
Paper
ARPC Terrorism
RiskInsuranceSeminar
Globally connected
through IFTRIP
Level 23/1 Market Street, Sydney, NSW, 2000
GPO Box Q1432, Queen Victoria Building, NSW, 1230
KEY HIGHLIGHTS KEY FACTS AS AT 30 JUNE 2018
230 cedants (insurer
customers)
Multi-year retrocession
in place
PhysicalProtectiveSecurity
Treatments forBuildings
Handbook
VISIONTo be an effective provider of terrorism risk insurance that facilitates private participation, supports national resilience, and reduces losses arising from catastrophic events caused by terrorism
When you reinsure with ARPC, your liability for terrorism is transferred to us for eligible risks and you do not have to hold capital above your retention. As
a consequence, there is minimal risk (if you are in the ARPC Scheme).
ARPC underpins the financial stability of the Australian economy following a declared terrorist incident. While large scale attacks are still occurring around the world, there
has been a trend towards lower complexity attacks perpetrated by lone actors.
ARPC is recognised as a global expert in terrorism reinsurance, has deep insurance and reinsurance expertise, and strong relationships with (and is
owned by) the Australian Government.
ARPC is part of the financial assistance and economic recovery phase of the Australian Government’s National Counter-Terrorism Plan.
WHY REINSURE WITH US?
Email: [email protected] Website: arpc.gov.au
* These pools are granted observer status in the forum.
Government Guarantee
$10 billion
Extreme Catastrophe LossesCovers two Probable
Maximum Loss Events from blasts, one in Sydney CBD and
one in Melbourne CBD
Global Retrocession Program
$3.065 billion
Large and Catastrophe Losses
Covers one Catastrophic Event
ARPC deductible
$285 millionAttritional losses
Industry Retention
$200 millionWorking losses
Individual Insurer Retention
OUR INTERNATIONAL NET WORK
SCHEME PERFORMANCESCHEME FUNDING
Aggregate Sum Insured Gross Premium Income
STRATEGIC PRIORITIES
Extend thought leadership and
expertise
ARPC is a member of the International Forum for Terrorism Risk (Re)Insurance Pools (IFTRIP). It is an informal framework for co-operation
where experience, ideas and best practice can be shared.
South Africa Spain * USA *
Netherlands RussiaNamibiaIsrael *
UK CCR *Australia BelgiumAustria
Denmark * France India *Germany
Key contactsDr. Christopher Wallace – Chief Executive OfficerMichael Pennell PSM – Chief Underwriting OfficerMichaela Flanagan – Chief Operating OfficerJohn Park – Chief Financial Officer
Phone: (02) 8223 6777Email: [email protected]
Engage, understand and collaborate with
stakeholders
Provide a world class response to terrorism
incidents
Be financially sustainable and organisationally
resilient
Enhance and strengthen the resilience and
preparedness of our people and organisation
159.1178.9
161.2 162.0 162.8 162.8
0
20
40
60
80
100
120
140
160
180
140
162.8162.0159.1
178.9
161.2 162.8+12.4%
-9.9%+0.5% +0.5% 0.0%
Gross Written Premium, $million
Actual Actual Budget Forecast Forecast Forecast2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
426
503183 166 186 169 190 170 195 172
0
100
200
300
400
500
600
700
800
900
$million
Actual Net
Assets 2017-18
Budget Inflows
2018-19
Budget Outflow 2018-19
Forecast Inflow
2019-20
Forecast Outflow 2019-20
Forecast Outflow 2020-21
Forecast Inflow
2020-21
Forcast Inflow
2021-22
Forecast Outflow 2021-22
Forcast Net
Assets 2021-22
400
490
Target Zone
350 285 285 285 285 285
2,500 2,500 2,500 2,500 2,500 2,500
500 565 565 565 565 565
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Actual 2018
$million
3,550
150Actual 2017 Forecast
2022Forecast
2020
200Budget 2019
200 200Forecast
2021
200
3,5503,500 3,550 3,550 3,550
200
+1.4% 0.0% 0.0% 0.0% 0.0%
Industry Retention
Additional Retrocession Capacity Purchased (excluding co-reinsurance)
Minimum Target Retrocession Capacity (excluding co-reinsurance)
ARPC Retrocession Deductible
$million
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Jun-20Jun-18
3.6 Trillion
$ trillion
Jun-16 Jun-17 Jun-21Jun-19
Tier A
Tier CTier B
EstEstEstEst*
Retrocession Program Projected Net Assets
