You are here: Home Knowledge Base Polity Dealing with Terrorism Solutions Strengthen our ability to manage the financial risks of terrorism through a combination of public and private instruments: terrorism catastrophe bonds, mutual insurance pools, and government insurance support.
Symposium 2008

Solution for Dealing with Terrorism

The Challenge

Over the past years there has been a dramatic increase in terrorism all over the world. At the same time, many governments are at a loss on how to combat terrorism. Despite massive counter-terrorist ...

Over the past years there has been a dramatic increase in terrorism all over the world. At the same time, many governments are at a loss on how to combat terrorism. Despite massive counter-terrorist activities, terrorist attacks in weak states such as Afghanistan and Iraq have continued and the threat of attacks in developed countries remains strong.

Strengthen our ability to manage the financial risks of terrorism through a combination of public and private instruments: terrorism catastrophe bonds, mutual insurance pools, and government insurance support.

A more sophisticated allocation of roles between private and public sectors will help mitigate the financial effects of major terrorist events. Different approaches will be appropriate for different situations. But all should include self-insurance of a large part of the risk; reducing insurers´ and reinsurers´ costs of holding capital to strengthen their capacity to insure losses; dispersal of the risk through the use of terrorism catastrophe bonds; and mutual insurance pools in combination with government backstops.

    Related Solutions

    Solution
    Symposium 2008

    In dealing with terrorism, place emphasis on the state´s capacity to protect the public, permit the exercise of its freedoms, and maintain public services.

    In dealing with terrorism, place emphasis on the state´s capacity to protect the public, permit the exercise of its freedoms, and maintain public services.

    In dealing with terrorism, place emphasis on the state´s capacity to protect the public, permit the exercise of its freedoms, and maintain public services.

    Polity
    Solution
    Symposium 2008

    If the government succeeds in protecting the public and maintaining public services, then publicize the impact of terrorist violence on innocent civilians, in order to weaken the legitimacy of terrorist ...

    If the government succeeds in protecting the public and maintaining public services, then publicize the impact of terrorist violence on innocent civilians, in order to weaken the legitimacy of terrori ...

    If the government succeeds in protecting the public and maintaining public services, then publicize the impact of terrorist violence on innocent civilians, in order to weaken the legitimacy of terrorist groups. At the same time, avoid overreaction.

    Polity, Civil Society
    Solution
    Symposium 2008

    Avoid policies and pronouncements that feed grievance. In pluralistic societies, pursue policies that integrate immigrants, rather than just providing passive welfare support.

    Avoid policies and pronouncements that feed grievance. In pluralistic societies, pursue policies that integrate immigrants, rather than just providing passive welfare support.

    Avoid policies and pronouncements that feed grievance. In pluralistic societies, pursue policies that integrate immigrants, rather than just providing passive welfare support.

    Polity, Civil Society
    Solution
    Symposium 2008

    Initiate a regional security regime for all the states of the Gulf and the Levant, aimed at mutual diplomatic recognition, gradual withdrawal of foreign forces, and nuclear nonproliferation.

    Initiate a regional security regime for all the states of the Gulf and the Levant, aimed at mutual diplomatic recognition, gradual withdrawal of foreign forces, and nuclear nonproliferation.

    Initiate a regional security regime for all the states of the Gulf and the Levant, aimed at mutual diplomatic recognition, gradual withdrawal of foreign forces, and nuclear nonproliferation.

    Polity, Business, Civil Society
    Solution
    Symposium 2008

    Govern through inclusive, legitimized political institutions, avoiding instrumental justification of violence.

    Govern through inclusive, legitimized political institutions, avoiding instrumental justification of violence.

    Govern through inclusive, legitimized political institutions, avoiding instrumental justification of violence.

    Polity
    Solution
    Symposium 2008

    Initiate a comprehensive international initiative to prevent weapons of mass destruction falling into terrorist hands.

    Initiate a comprehensive international initiative to prevent weapons of mass destruction falling into terrorist hands.

    Initiate a comprehensive international initiative to prevent weapons of mass destruction falling into terrorist hands.

    Polity, Civil Society