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Insuring Against Failure: The Terrorist Threat to Australia

This is a reprint of an article originally published in Insurance News. For the original article, click here.

Australia, along with New Zealand, is part of the formidable Five Eyes Alliance with the intelligence forces of the U.K., U.S. and Canada.

With a massive annual budget of US$100 billion (AUD$138 billion), this is the most effective and intrusive intelligence cooperative in the world, capable of smashing terrorist cells and interdicting complex terrorist plots.

The price of security is not just financial; there is also a cost in loss of privacy. At a recent Five Eyes ministerial meeting on Australia’s Gold Coast, a statement was issued warning that privacy is not absolute, and tech companies must give law enforcement access to encrypted data.

Credible intelligence assessed by Australian security agencies indicates individuals or groups continue to possess the intent and capability to conduct a terrorist attack in Australia. On a five-grade scale, the current threat level is three: probable. The higher grades are “expected” and “certain”. By comparison, the U.K. threat level is one notch higher at grade four.

Everyone has their own social network. For terrorists, interaction with their social network is needed for motivation and gaining the tradecraft for terrorist operations. However, the more communication there is between cell members, the greater the chance that counter-terrorism surveillance will close in. Too many terrorists spoil the plot.

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