You may have noticed that most of the blogs published here are generally light hearted. In the breakdown of a typical blog post it would usually go something like this: ten per cent puns, ten per cent actually useful information, and eighty per cent mindless jabbering. Well, I’m about to break my lucky streak here as we enter the realms of a pretty serious topic – terrorism.
Here’s where we get technical. Terrorism, as it turns out, is very significantly related to the insurance industry these days. Let’s start at the beginning, a very good place to start. The Australian Reinsurance Pool Corporation (ARPC) is a public financial corporation established by the Terrorism Insurance Act of 2003. According to the Australian Government, one of its jobs is to administer insurance schemes for commercial property and associated business interruption losses airing from a declared terrorist incident.
So here’s the gist of it. Through the ARPC, in the event of a terrorism incident, eligible Australian properties can be covered for loss or damage and associated business interruption. This includes buildings or other structures on the land. Still with me?
Well it’s been reported by Insurance News this week that the ARPC has been expanded to include mixed-use and high-value residential buildings. The definition of ‘eligible property’ has been widened to include buildings with at least 20% commercial floor space, or that have a building sum insured of at least $50 million. The Terrorism Insurance Act has also been amended to remove doubts over coverage for chemical or biological attacks.
The ARPC Chief Underwriting Officer believes that the recent expansions will ‘modernise scheme coverage, underpin its financial strength, and ensure the ARPC is better equipped to protect Australia from the economic losses caused by terrorism catastrophe.’ Phew. If you’re still reading this, then congratulations, you’ve made it to then end. And on second thoughts, this blog had a whole lot more mindless jabbering than I’d originally intended.
Words by Skye Jamieson