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Understanding the Terror Attacks in Sri Lanka

A decade ago, an RMS colleague traveling to Bali for a climate change conference sought my advice on where to stay to minimize the risk of falling victim to terrorism. In 2002, some 204 people had been killed in a bomb attack by Islamist militants in Kuta Beach, a busy tourist area in Bali. My advice then, as it is now, was to stay away from luxury hotels. Not just for tourists, but for insurers also, the risk to luxury hotels is far higher than for lesser accommodation.

The basic principles of terrorism risk modeling explain the terrorist preference for luxury hotels and places of worship, both of which were targeted in a coordinated terrorist attack in Sri Lanka on Easter Sunday (April 21), which with a current death toll of 290, has nearly killed half as many more people than the Bali bombing.

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