April 18, 2004 by Canadian Underwriter
Iraq is poised to become the top “hot spot” for terrorism risk with the U.S.-led intervention resulting in an increase in terrorist activity and kidnappings, such as the recent hostage-taking incidents, according to Aon’s counter terrorism and political risk division. The group recently released its 2004 “global terrorism risk map”.
Currently Iraq stands in sixth place, previously not even ranked on the list. Top spot for the moment belongs to Kashmir, but Iraq should move ahead in 2004, Aon reports.
India is also experiencing a terrorism upsurge, from separatists, leftists, Sikh, Hindu and Islamic extremist groups. “Given that a number of Western companies will be outsourcing operations to India, the need for proper threat assessment and terrorism risk management on the part of these companies has never been greater,” says Justin Priestly, director in the Aon division.
Recent incidents around the world, including the bombing of commuter trains in Madrid, have a serious impact on business confidence, and are on the rise, concludes Paul Bassett, executive director of the political risk division. “Companies urgently need to review the threat to their staff and investments all over the world. In the current situation, location is less relevant than what a company represents as a target to terrorists: the more well-known the brand and the bigger the presence, the greater the threat faced by staff and property all around the world.”
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