Tuesday, June 27, 2023

As Russia Vows Wagner Will Stay in Africa, U.N. Forces Prepare to Exit Mali
NEWSWEEK
ON 6/27/23 

United Nations Peacekeepers are preparing to withdraw from one of their largest missions just a day after Russia's top diplomat vowed the private military company Wagner Group would continue operations in Mali, even after the organization staged a mutiny against the Russian Defense Ministry over the weekend.

Relations between the Malian government and the 13,000-strong U.N. Multidimensional Integrated Stabilization Mission in Mali have soured since Interim President Assimi Goïta took power in a May 2021 military coup. Last week, Foreign Minister Abdoulaye Diop called on the U.N. mission to exit the country "without delay," accusing it of "fueling community tensions exacerbated by extremely serious allegations which are highly detrimental to peace, reconciliation and national cohesion in Mali."

On Tuesday, Reuters reported that a draft U.N. Security Council resolution outlined a specific timeline for the MINUSMA exit, which would begin as soon as the end of this week, on June 30, one day short of its 10th anniversary.

Speaking to Newsweek, a U.N. Peacekeeping spokesperson said that, "subject to the decision of the Security Council, the United Nations is ready to work with the Malian authorities on an exit plan for MINUSMA."

The spokesperson explained that plans for such a departure were already being formed by U.N. Peacekeeping leadership.

"The Secretariat has begun internal discussions and planning for an orderly exit, identifying the multiple aspects and layers of such a massive and complex endeavor, while also simultaneously engaging Member States in this regard," the spokesperson said.

"Securing the constructive cooperation of the Malian authorities will be essential to facilitate the process," the spokesperson added.

Newsweek has reached out to the Malian Embassy in Washington, D.C. for comment.


Supporters of Malian Interim President Assimi Goïta wave the national flag of Russia during a pro-junta and pro-Russia rally in Bamako on May 13, 2022. After the exit of French troops involved in counterterrorism operations, the Goïta administration has withdrawn consent for U.N. Peacekeepers as well, all while bolstering ties with Moscow.
OUSMANE MAKAVELI/AFP/GETTY IMAGES

If carried out, the exit would mark the second major departure of foreign forces from Mali in recent years, after France withdrew its own personnel from a joint counterterrorism campaign in its former colony last year. That move was also marked by deteriorating ties between the Malian and French governments following back-to-back coups in 2020 and 2021 in Bamako.

In the meantime, however, Mali has bolstered its relationship with Russia and praised the work of the Wagner Group, despite Western allegations of human rights abuses committed by a group that the United States designated a transnational criminal organization in January.

But the Wagner Group has also elicited concerns within Russia itself after its leader, Yevgeny Prigozhin, called for a rebellion against Russian military leadership on Friday amid the ongoing war in Ukraine. Accusing the Russian Defense Ministry of ordering strikes against Wagner Group positions in Ukraine, he mobilized the organization's fighters to conduct a brazen incursion within Russia, taking positions in Rostov-on-Don and Voronezh before abruptly halting an advance toward Moscow amid direct threats from President Vladimir Putin.

As questions continue to surround the fate of Prigozhin and the Wagner Group, in comments made to the state-run RT outlet Russian Foreign Minister Sergey Lavrov attempted to dispel rumors on Monday that partners in Mali and the Central African Republic were in a state of "panic" over the recent events.

"The CAR and Mali are the countries whose respective governments officially requested the private military company to offer its services," Lavrov said. "This was at a time when the CAR and Mali had been abandoned by the French and other Europeans who withdrew their anti-terrorist contingents and closed down military bases that were supposed to sustain the fight against terrorism."

"At a time when they were left face to face with thugs, Bangui and Bamako asked Wagner PMC to provide security for their authorities," he added. "In addition to relations with this PMC, the governments of the CAR and Mali have official contacts with our leadership. At their request, several hundred military personnel are working in the CAR as instructors. This work will continue."

Washington, for its part, has expressed concern over MINUSMA's planned exit from Mali.

"The United States regrets the transition government of Mali's decision to revoke its consent for MINUSMA," State Department spokesperson Matthew Miller said in a statement last week.

"We are concerned about the effects this decision will have on the security and humanitarian crises impacting the Malian people," Miller added. "We will continue to work with our partners in West Africa to help them tackle the urgent security and governance challenges they face. We welcome further consultations with regional leaders on additional steps to promote stability and prevent conflict."

Miller said President Joe Biden's administration continued to support MINUSMA chief and U.N. Special Representative to the Secretary-General El-Ghassim Wane.

"MINUSMA's drawdown must be orderly and responsible, prioritizing the safety and security of peacekeepers and Malians," Miller said. "The transition government must also continue to adhere to all its commitments, including the transition to a democratically elected, civilian-led government by March 2024 and implementation of the Algiers Accord."

An attendee holds a placard translating into "MINUSMA GO AWAY" during Mali's Independence Day celebrations and a march against United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) in Bamako on September 22, 2022. Mali is one of several African nations in which resentment is on the rise toward international troop presence while public sentiment embraces Russia's private military company Wagner Group.
OUSMANE MAKAVELI/AFP/GETTY IMAGES

MINUSMA has supported peace efforts in northern Mali, known to separatists as "Azawad," including the 2015 agreement between the government and a coalition of Tuareg-led rebels known as the Coordination of Azawad Movements (CMA). MINUSMA's roles have included monitoring the subsequent ceasefire, facilitating the extension of state authority and protecting civilians in urban centers from militant groups.

But political and security unrest has persisted in the West African nation, marking one of the deadliest spots for U.N. Peacekeepers, of whom 174 have died and more than 700 have been wounded over the past decade.

Like the other 11 active U.N. Peacekeeping missions, most of which are in Africa, MINUSMA's mandate is determined by the U.N. Security Council but also in effect requires the consent of the host nation.

Wagner's network in Africa faces uncertain future

  • Published

    IMAGE SOURCE,AFP

    The failed weekend mutiny in Russia by the Wagner mercenary group is likely to have repercussions for Africa, where it has several thousand fighters based as well as lucrative business interests.

    It is unclear whether Wagner's leader Yevgeny Prigozhin, who has been told to relocate to Belarus, will still run his private army from there to allow it to service its security contracts in places like the Central African Republic (CAR) and Mali.

    On Monday, Russian Foreign Minister Sergei Lavrov assured CAR and Mali of the status quo in terms of their crucial security arrangements.

    Why is Wagner in Africa?

    Primarily to make money - though as it had tacit approval from the Kremlin, it also bolstered Russia's diplomatic and economic interests.

    It was a major boon for Russia, for example, when France withdrew its forces from Mali after Wagner agreed in 2021 to help the new military junta in its battle against Islamist militants.

    Wagner has just posted a timeline of its operational history on Telegram, confirming its official involvement in Africa began in 2018 when it sent "military instructors" to the CAR and Sudan - and then moving into Libya the following year.

    It has been noted that these countries have natural resources of interest to Prigozhin's outfit.

    The CAR, which has been unstable for decades, is rich in diamonds, gold, oil and uranium.

    Wagner has allowed President Faustin-Archange Touadéra, who even has the mercenaries as his bodyguards, to shrug off the influence of former colonial power France as the country tries to gain the upper hand against rebel groups - in return for a slice of the resource pie.

    IMAGE SOURCE,GETTY IMAGES
    Image caption,
    CAR's president was pictured on the campaign trail in December with suspected Wagner bodyguards

    "Wagner's operational strategy over the past two to three years has been to expand both its military and economic footprint in Africa," Julia Stanyard, from the Global Initiative against Transnational Organized Crime, told the BBC.

    The think tank analyst says Wagner has a network of companies associated with it - and they have pursued commercial activities in the countries in which the mercenary group operates.

    In CAR these allegedly trade in conflict minerals and timber, as well as making beer and vodka.

    Wagner's brief foray into Sudan allowed Russian mining firm M Invest, which the US Treasury alleges is owned or controlled by Prigozhin, to set up operations there. Its subsidiary, Meroe Gold, is one of Africa's biggest gold producers.

    In Libya, Wagner is not thought to have the numbers of fighters in the country as it did when it backed renegade general Khalifa Haftar's attempt to take the capital, Tripoli, nearly four years ago.

    But strategically, Libya creates a gateway for Russia into Africa, strengthens its presence in the Mediterranean and aligns with the Kremlin's backing of Gen Haftar. Wagner mercenaries still remain around key oil facilities in Haftar strongholds in the east and south of the country - and sources have told the BBC there has not been a noticeable change on the ground since Saturday.

    Wagner's interest in Mali may be linked to its rich gold reserves - though there is no evidence as yet of its firms operating there - and it is likely to be more strategic, opening up Russia's sphere of influence in West African countries under pressure from so-called Islamic State and al-Qaeda groups.

    Mali could also, according to the large batch of US military documents leaked earlier this year, have been used as a proxy to acquire weapons from Turkey on Wagner's behalf, with one Pentagon dispatch saying junta leader Col Assimi Goïta had confirmed it would do so.

    What has Wagner's impact been on the ground?

    Wagner fighters have been accused of widespread human rights abuses in several countries.

    In 2021, a BBC investigation found evidence that implicated members of the group in Libya in the execution of civilians and the unlawful use of anti-personnel mines and booby traps in family homes around Tripoli.

    In Mali, figures from the Armed Conflict Location and Event Data Project (Acled) show that militant violence more than doubled between 2021 and 2022, with civilians making up the highest number of casualties.

    1px transparent line

    Operations by the army involving the Wagner group have led to higher civilian deaths. Among the worst incidents was the killing of some 500 civilians in a week-long operation in the central town of Moura. The UN linked "foreign forces" and the Malian army to the killings, while the US sanctioned two soldiers and the de facto commander of Wagner in Mali.

    Earlier this year, the US Treasury accused the mercenaries of engaging in an ongoing pattern of serious criminal activity, including "mass executions, rape, child abductions, and physical abuse in the Central African Republic and Mali".

    Though Wagner's success against a powerful rebel coalition in the CAR has entrenched public support there.

    This fan base has been helped by local troll farms, run by Mr Prigozhin, with the intention of influencing debate in Africa and whipping up anti-Western sentiment.

    For example, the Malian junta has just asked the UN peacekeeping force to leave the country - in line with a social media push to get the force replaced by Russian troops.

    In May, Mr Prigozhin told the Cameroon-based Afrique Media TV, a station affiliated with him, that Wagner mercenaries were "more effective" than UN peacekeepers in Mali and the CAR.

    What is the possible fallout for Africa?

    Analysts say while Wagner has been incredibly useful for the Russian state in Africa, especially as it seeks diplomatic support amid the Ukraine conflict - the mercenary group could not be where it is without the Kremlin.

    The two are so intertwined, unravelling them on the continent seems a perilous task.

    It is clear in Libya, for example, that Wagner units have been relying heavily on support from the Russian defence ministry.

    A UN diplomatic source and Wagner watcher has told the BBC that if the group were to be completely disbanded, its units in Africa would no longer be resupplied by the Russian authorities.

    Meanwhile all their fighters in Africa are paid by a Prigozhin holding company, Lou Osborn from the All Eyes on Wagner Project, has told the BBC - an interesting point with regard to Mr Lavrov's recent assurances to the CAR and Mali.

    The UN source says that if fighters are left unpaid, with no political or military support - they would essentially be out of job and up for hire in countries grappling with dangerous civil wars and insurgencies.

    Russia's President Vladimir Putin has said Wagner fighters should join the regular army, go home or head for Belarus - but Ms Stanyard says it is unclear if this will be the case for the Russian soldiers of fortune in Africa.

    The analyst suggests there may be "some sort of compromise position whereby Yevgeny Prigozhin, from his current exile in Belarus, will retain control and ultimate responsibility for the Wagner operations in Africa".

    There are also big questions about what will become of the murky business operations in Africa linked to Wagner and Prigozhin.

    Interestingly the African-based troll farms, which went silent during the mutiny on Saturday, have focused on the Kremlin's line since the Belarus deal was announced.

    One called Mr Putin "the master of war" but did not go so far as to discredit his erstwhile ally Prigozhin - perhaps indicating the two may fudge a way forward together on Africa.

    British lawmakers urge government not to deport child asylum seekers to Rwanda

    Risk of harm to children outweighs any perceived damage to effectiveness of government’s policy agenda, says head of parliament committee

    Mehmet Solmaz |27.06.2023 -
    Dover, United Kingdom

    BIRMINGHAM, England

    Britain must rule out any intention to detain asylum-seeking children or forcibly remove them to Rwanda, concluded a new parliamentary report published on Tuesday.

    In its report on equality and the UK asylum process, parliament's Women and Equalities Committee raised concerns about "unnecessary risks" that vulnerable people face due to recent legislation, including a deal signed last year for asylum seekers to be deported to Rwanda until their applications are processed.

    The report said the Nationality and Borders Act, which was passed in April 2022, was inadequately assessed for its impact on equality as it remained unclear how the risks of unequal effects will be mitigated.

    It said the potential harms of detaining and removing asylum-seeking children to Rwanda "outweigh" any risk to the deterrent effect intended by the government's reforms.

    The UK paid Rwanda €120 million ($146 million) upfront to facilitate the implementation of the five-year agreement which the British government hopes could help deter migrants from making the risky journey across the English Channel on small boats.

    The report also called for an "urgent review" of safeguards for vulnerable people in asylum accommodations, including existing contingency accommodations and the proposed use of barges, which the Home Office announced earlier this year.

    It described the current housing of vulnerable people — including of women and children — in crowded temporary asylum accommodation as "unacceptable."

    The committee recommended that the government monitor and reduce the "unequal effects" of its asylum reforms, including on women with histories of sexual and gender-based violence and abuse. It urged the Home Office to stop the "dangerous practice" of moving pregnant women between asylum accommodation settings and highlighted that mothers and babies should only move after receiving clinical advice and with the mother's consent.

    Committee Chair Caroline Nokes, a lawmaker from the ruling Conservatives, said the inquiry took place in the context of an asylum system under immense strain, with increasing numbers of claims and a staggering rise in the backlog of people waiting for a decision on their case.

    "We were disturbed by the Home Office's inadequate management of risks of harm to asylum seekers with protected characteristics," she said, adding that a leading concern was the treatment of children within the asylum system.

    "Any intention to detain child asylum seekers under the Illegal Migration Bill and forcibly remove them to Rwanda must be abandoned. The risk of harm to children outweighs any perceived damage to the effectiveness of the Government’s policy agenda."

    - Illegal Migration Bill and Rwanda plan

    Introduced in March this year, the UK government's "Illegal Migration Bill," which aimed to remove migrants who enter the country on small boats, has been met with criticism from human rights groups and refugee advocates who argue that it violates international law and the UK's obligations under the Refugee Convention.

    The plan includes detaining the majority of those arriving on small boats for the first 28 days without bail or judicial review.

    Last year, the British government announced a new and controversial relocation plan that would see asylum seekers attempting to enter the UK being sent to Rwanda for resettlement.

    The policy, known as "Rwanda plan" sparked international criticism. But the British High Court ruled in December that the plans to deport asylum seekers to Rwanda are lawful.

    More than 44,000 migrants arrived in the UK across the English Channel last year.



    Canada's wildfires break carbon emissions record as smoke reaches Europe


    A satellite image shows smoke from Canadian wildfires reaching Western Europe, June 26, 2023.
    (Reuters)

    Reuters
    Published: 27 June ,2023

    Wildfires burning through large swathes of eastern and western Canada have released a record 160 million tons of carbon, the EU’s Copernicus Atmospheric Monitoring Service said on Tuesday.

    This year’s wildfire season is the worst on record in Canada, with some 76,000 square kilometres (29,000 square miles) burning across eastern and western Canada. That’s greater than the combined area burned in 2016, 2019, 2020 and 2022, according to the Canadian Interagency Forest Fire Centre.


    As of June 26, the annual emissions from the fires are now the largest for Canada since satellite monitoring began in 2003, surpassing 2014 at 140 million tons.

    “The difference is eastern Canada fires driving this growth in the emissions more than just western Canada,” said Copernicus senior scientist Mark Parrington. Emissions from just Alberta and British Columbia, he said, are far from setting any record.

    Scientists are especially concerned about what Canada’s fires are putting into the atmosphere - and the air we breathe.

    The carbon they have released is roughly equivalent to Indonesia’s annual carbon dioxide emissions from the burning of fossil fuels.

    Forests act as a critical sink for planet-warming carbon. It’s estimated that Canada’s northern boreal forest stores more than 200 billion tons of carbon - equivalent to several decades worth of global carbon emissions. But when forests burn, they release some of that carbon into the atmosphere. This speeds up global warming and creates a dangerous feedback loop by creating the conditions where forests are more likely to burn.

    Smoke from the Canadian wildfires blanketed several major urban centres in June, including New York City and Toronto, tinging skies an eerie orange.

    Public health authorities issued air quality alerts, urging residents to stay inside. Wildfire smoke is linked to higher rates of heart attacks, strokes, and more visits to emergency rooms for respiratory conditions.

    Now, the plume has crossed the North Atlantic. Worsening fires in Quebec and Ontario will likely make for hazy skies and deep orange sunsets in Europe this week, Parrington said. However, because the smoke is predicted to stay higher in the atmosphere, it’s unlikely surface air quality will be impacted.

    With much of Canada still experiencing unusually warm and dry conditions, “there’s still no end in sight”, Parrington said.

    Canada’s wildfire season typically peaks in late July or August, with emissions continuing to climb throughout the summer.


    Conservatives one step closer to killing EU nature law — but risk internal split


    Pressure is growing on Commission President Ursula von der Leyen to go against her party and defend the bill.


    EPP leader Manfred Weber says his group will reject the nature restoration proposal
     | Olivier Hoslet/EPA-EFE

    BY ZIA WEISE
    JUNE 27, 2023 

    A right-wing campaign to put key elements of the EU’s Green Deal on ice is gaining steam, leaving Commission President Ursula von der Leyen in an awkward position.

    On Tuesday, the center-right European People’s Party (EPP) and its allies succeeded in blocking the EU's landmark nature law from passing a key committee vote — part of a larger effort to press the pause button on environmental legislation.

    “We are on the edge of doing too much,” German EPP lawmaker Peter Liese told reporters after the vote. “The Green Deal is a good thing, but we are about to overstretch it.”

    The EPP has warned Brussels risks overburdening industry and farmers with the dozens of proposals that make up the European Green Deal. The group has fought particularly hard against legislation aimed at greening agriculture, like new rules on pesticides and land use.

    The failure of the Nature Restoration Law to pass in the European Parliament’s environment committee on Tuesday — 44 members voted in favor, 44 against — marks a major victory in the EPP’s campaign.

    For now, anyway.


    The bill will live to fight another day — the entire Parliament is set to vote on the law next month, and majorities in plenary often differ from those in committees.

    The EPP's unified front on the bill could shatter. For Tuesday’s vote, the group chose to substitute regular committee members that were undecided or in favor of the Nature Restoration Law with firm opponents from within the group — a move it can’t pull in plenary.

    The fracture may even run all the way to the top: The subject of the EPP’s ire — the expanding Green Deal, including its environmental pillar — is the very policy on which Ursula von der Leyen has staked her reputation and reelection.

    The Commission president, an EPP member, has so far kept mum about this particular law, but she’s under increasing pressure to come out in support — and against her own party.

    Green MEP Jutta Paulus, speaking outside the committee chamber, said von der Leyen was likely staying silent to “secure the broadest possible support” for her reelection.

    “We are waiting to hear her reaction,” said Spanish center-left lawmaker César Luena, who led the environment committee’s work on the nature law. This legislation, he added, “cannot depend on a row in a political party.”
     
    All eyes on plenary

    No other Green Deal proposal has faced as fierce a backlash as the Nature Restoration Law, although other bills affecting agriculture are similarly embattled.

    The legislation seeks to return the Continent’s degraded natural areas to a healthy state in an effort to fight both biodiversity decline and climate change. More than 80 percent of the EU’s habitats are currently in poor condition; the bloc’s climate targets rely partially on the ability of healthy ecosystems to absorb carbon dioxide.

    Speaking to the committee about disaster preparedness before Tuesday’s vote, the Commission’s crisis management chief Janez Lenarčič pleaded with MEPs to back the law.

    “Yes, it is ambitious. But as commissioner for crisis management, I fear that without this ambition we face a future filled with even more disasters,” he said.

    Attempts to find a compromise collapsed after the EPP walked out of negotiations and the agriculture and fisheries committees rejected the law. Several liberal and non-affiliated MEPs sided with them, splitting the 88-member environment committee down the middle.

    In the first round of voting on June 15 in Strasbourg, a tied vote defeated an EPP push to reject the entire legislation, meaning the legislation would go to plenary no matter the result of the committee vote.

    But that same 44-44 result on Tuesday spelled defeat for the legislation's supporters, as it meant there was no majority in favor of the proposal.

    The law’s supporters — the Socialists & Democrats, the Greens, the Left and parts of the liberal Renew Europe group — reached for a positive spin after the vote.

    “In Strasbourg, we stopped them,” said lead MEP Luena. “In a way, we have already won, because we have managed for this text to continue and be discussed in plenary.”

    Silent Berlaymont


    But the press conference following the vote revealed a growing sense of hostility between groups — many of which are in campaign mode as the European election season draws closer.

    EPP members interrupted lead MEP Luena — who was speaking to reporters alongside environment committee chair Pascal Canfin — and insisted he leave the press room so that the group could start its own press conference on time.

    The gloves soon came off. EPP member Liese took aim at Canfin, calling him "the worst and most partisan president of an environment committee I’ve ever experienced.”

    Canfin had accused EPP leader Manfred Weber, a vocal opponent of the law, of “manipulation” after the group decided to substitute several regular committee members — at least seven out of 22 by POLITICO’s count — to ensure all of its MEPs voted against the proposal.

    Czech EPP lawmaker Stanislav Polčák, who had previously signaled support for the law, was among those who were replaced. A single vote could have broken the tie.

    Liese objected to Canfin's claims, saying no MEP was forced to give up their vote.

    “Within the EPP, I think, there is a clear battle,” Canfin said at the press conference. “Between the line that is embodied by Weber and the line that is embodied by Ursula von der Leyen.”

    Liese denied that there was any sort of split with the Commission president.

    They pinned the blame for the “bad law” on Green Deal chief Frans Timmermans, a center-left politician, and called on him to “withdraw” the proposal. Timmermans has said he is open to further negotiations on the law, but ruled out a complete redraft.

    A plenary vote has been tentatively scheduled for July 11. Groups will try to find compromise on possible changes, but the EPP will also have another chance to reject the entire law. While some conservatives might vote in favor, the entire Parliament skews more conservative on climate action than the environment committee.

    The Nature Restoration Law’s backers are now looking to the Berlaymont for support. Luena, issuing a “solemn appeal” to von der Leyen, emphasized that her reelection depended not only on the EPP but on a wider majority.

    “My group supported her to become president with a key policy: The European Green Deal,” he said. “Now her political family are moving away from that deal and she hasn’t said anything. Before the Strasbourg plenary, Ms. von der Leyen should react.”
    "REPLACEMENT" WORKERS
    Israel brings in 10,000 Indian labourers to replace Palestinians


    Construction workers build illegal settlements in the West Bank 
    [Mahfouz Abu Turk/Apaimages]

    Instead of relying on Palestinian workers, Israel has decided to import 10,000 workers from India. The Indian Government has signed an agreement with Israel to bring 10,000 Indian workers to the country. Half of these workers are destined for the construction sector, with the remaining half designated for nursing roles. The arrival of these workers will be staged, with 2,500 construction and an equal number of nursing workers due in the first year, according to reports on the Walla website.

    The Population and Immigration Authority in Israel states that the incoming workers from India are diligent, experienced and fluent in English. They are expected to meet the growing demand for labour in Israel, specifically in the nursing and construction fields.

    As part of the efforts to reach this agreement, a multi-ministerial mission visited India last March to work on a blueprint for employing workers in the nursing and construction sectors. The delegation toured training centres and expressed its admiration for the training provided to the workers before their arrival.

    At this stage, following the drafting of agreements by specialists from both sides, matters stand at the final phase of ratifying the agreements by the governments. The spokesman for the Ministry of Population and Immigration stated, "We expect the agreements to be approved shortly, and we will soon be able to start setting up the necessary mechanisms to employ skilled labour in a proper and supervised manner."

    Meanwhile, Palestinian workers provide a vital contribution to the construction sector in the Israeli market. However, security incidents, military escalation, and the absence of a political solution make the reliance on workers from India – unaffected by security situations on their way to work – an attractive and highly significant factor for the Israeli economy, according to the Hebrew website.

    Based on the Worker's Voice website (Kav LaOved), the number of Palestinian workers in Israel has steadily increased in recent years, particularly in the construction industry, the largest employer of Palestinian workers in Israel. As of mid-2020, more than 80,000 permanent workers were employed in Israel and about 60,000 in the construction industry.

    May 29, 2023 



    The Palestinian resistance is making inroads

    June 27, 2023 

    Military wings of Palestinian groups in the Gaza Strip take part in a joint military exercise, on December 29, 2020 in Gaza City, Gaza [Ali Jadallah - Anadolu Agency]

    Ramona Wadi
    walzerscent
    June 27, 2023 

    Israel needs the Palestinian Authority. That much has been established clearly by Israeli Prime Minister Benjamin Netanyahu during a private meeting of the Foreign Affairs and Defence Committee. At a time when the PA is clearly losing its control over Palestinians, Netanyahu is speaking truths which Ramallah, in its desire to cling to power, will not heed. That is, nothing other than Israel's concern for the PA's survival will strike a chord with leader Mahmoud Abbas.

    "We need the Palestinian Authority. We cannot allow it to collapse. We also do not want it to collapse. We are ready to help it financially," said Netanyahu, according to Israeli media. "Where it succeeds in operating, it does the job for us."

    Such clarity regarding the PA's role in Israeli colonialism should leave no doubts as to the PA's corrupt collaboration. The "sacred" (as far as Abbas is concerned) security coordination with Israel, as well as the PA's diplomatic endeavours over the two-state compromise, portray a leadership that is determined to prevent Palestinians from ever achieving any shard of independence. "Their ambition for a state must be suppressed," Netanyahu said of Palestinians. Abbas is tacitly in agreement; Palestinian independence would surely spell the end of the PA. For now, Israel benefits from a seamless collaboration with the PA, orchestrated by the international community and interspersed with routine condemnations from Ramallah linked mostly to settlement expansion, and bleating to the UN about international protection for Palestinians from Israeli colonial violence, which the PA aids through its own security services.

    READ: Jenin tells the story of Palestine

    Two main points can be taken from Netanyahu's statements. One is that the current Palestinian resistance is worrisome enough for Israel to require annihilation from within. The resistance is clearly making inroads. Secondly, Palestinian resistance is altering Palestinian politics in an unprecedented way, since it is now one of Israel's priorities to prevent the PA from collapse. Netanyahu's concerns are also Abbas's concerns. The only difference is that Netanyahu's need for the PA's survival is to aid Israeli colonisation, while the PA perceives its collaborative role as a means to extend its existence. However, the PA is still existing on borrowed time and the power vacuum created as a result of the PA's dissociation from Palestinian resistance will increase in proportion to the PA's irrelevance.

    For Palestinians, the message is clear. What Israel needs, Palestinians can do without. The PA has long manipulated Palestinians' historical memory and collective trauma, marginalised refugees to the point of oblivion, made concessions which have changed Palestine irrevocably, and upheld security coordination against the entire Palestinian population. It has oppressed Palestinians involved in resistance, exploited Palestinian prisoners, and tortured and, on occasions, murdered Palestinians who posed a threat to the PA's illegitimate rule.

    READ: Israel anger as US raises aid to UNRWA by $16m

    As colonial and collaborative violence against Palestinians is set to increase – the PA will upscale its oppression in return for its extended existence – the Palestinian resistance needs to remain unified. With Palestinian factions taking a backseat currently, the opportunity for resistance that is derived from the Palestinian experience can thrive and flourish. Israel may have the military power, but it still faces unknowns and is attempting desperately to keep the status quo, in terms of the PA, from floundering. Netanyahu's concern provides a window of opportunity for Palestinian resistance.

    The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.

    As Pittsburgh shooter stood trial, a congregation he attacked found parallels with Palestinians in the West Bank

    (JTA) —  About two weeks ago, the CEO of HIAS, the Jewish refugee aid group, testified in the trial of the Pittsburgh synagogue gunman — discussing how his group’s partnership with one of the building’s congregations prompted the shooter to commit the attack. 

    As he took the stand, some members of that congregation, Dor Hadash, were far from Pittsburgh. They were in the midst of a tour of Israel and the West Bank whose goal was to bring synagogues to meet Palestinians and Arab-Israelis as well as Jewish Israelis. But despite the distance, Dor Hadash Rabbi Amy Bardack saw a thematic parallel between the trial and the group’s time in the West Bank.

    “We were before the shooting very committed to refugee rights,” Bardack said of her congregation during an interview earlier this month in the city of Bethlehem. “And after the shooting, this congregation did not shrink from its activism but leaned into it even further.”

    Bardack added that the trip “was an opportunity to dip our toe into thinking about refugees in the context of this land and country.”

    The nine-day trip, run by an organization called Shleimut, is among the latest initiatives aiming to familiarize American Jews with Palestinians as well as Israelis. The itinerary split time between Israel and the West Bank, and, according to Shleimut’s website, asked participants to “reimagine how to integrate Israel/Palestine into their life and work.”

    For the Dor Hadash delegation, however, there was another dimension to the tour. While the trip had been scheduled before the trial date was set, the court proceedings have resurfaced memories from the shooting, and spurred the Dor Hadash participants to connect their own trauma to both the Israeli and Palestinian experience. 

    “The trauma for Dor Hadash awakened something in me that I would not just as an individual have known about,” said Wendy Kobee, a Dor Hadash member who participated in the trip. “It allows me to be more sensitive to those kinds of traumas that people and communities experience.”

    Referring to a Palestinian villager the group met who was worried about his home being demolished because it was built without a permit approved by Israeli authorities, Bardack said, “The fear and anxiety that he spoke about reminds me of those early days after the shooting.” 

    Listening to his description of what she called “the stage of acute traumatic response,” Bardack, who worked for the Jewish Federation of Greater Pittsburgh at the time of the 2018 attack, thought of “the immediate aftermath of the shooting. Many Pittsburgh Jews described the same symptoms, with their bodies in adrenaline overdrive.”

    In the days following the shooting, Israeli trauma specialists saw parallels between the attack and the experience of Israeli terror victims. The Israel Trauma Coalition, which aids Israeli civilians experiencing trauma, as well as victims of natural disasters and conflicts around the world, sent a delegation to Pittsburgh soon after the shooting. The group’s CEO, Talia Levanon, said in a statement at the time, “As Israelis, we see an obligation to share this knowledge with communities in crisis all over the world, and even more so with our brothers and sisters in the Jewish communities of North America.”

    Bardack referred to the Israel Trauma Coalition’s work in Pittsburgh, which she said “helped us enormously,” adding that she wished the coalition could help Palerstinians as well. She also said she was struck by “the ongoing trauma of Israeli soldiers who have to do this.” She added, “The unhealed trauma here is enormously sad.”

    It was Shleimut’s first time bringing synagogue delegations on the trip, which was funded by participant fees ranging from $1,800 to $3,600 on a sliding scale. Shleimut’s founder, Ilana Sumka, is a former staff member of Encounter — a long-running program that brings American Jews to the West Bank to learn about Palestinians’ experiences. She also founded the Center for Jewish Nonviolence, a group that organizes American Jews to oppose Israel’s occupation of the West Bank through civil disobedience.

    Shleimut, which began operating in 2018, has worked to blend social justice activism with spiritual practice. Its delegations to Israel and the West Bank aim to split time evenly between Jewish Israelis on one hand and Arab Israelis and Palestinians on the other. That’s a departure from the traditional itineraries of most U.S. synagogue trips to Israel, which largely spend their time in Jewish Israeli areas. 

    Shleimut’s focus is on Israeli and Palestinian human rights activists and progressive groups, and has little engagement with right-wing or pro-settler Israeli organizations, though participants did speak with individual right-wing Israelis. Throughout the Shleimut itinerary, participants hear from leaders of nonprofits that oppose Israel’s West Bank occupation, such as B’Tselem, Breaking the Silence, Adalah and Combatants for Peace. 

    The trip began on June 6, and took participants to Tel Aviv, Jerusalem and towns in northern Israel in addition to the Palestinian West Bank cities of Ramallah, Bethlehem and Hebron, as well as smaller villages. The group walked through multiple Israeli West Bank checkpoints, visited a Palestinian farm as well as a kibbutz, and attended the Tel Aviv Pride Parade and a Jerusalem protest against the government’s proposed judicial overhaul. 

    The group discussed Jewish Israeli as well as Palestinian trauma, including the legacy of the Holocaust and what Sumka called “contemporary Jewish Israeli pain from wars over the last 75 years and terrorist attacks.” 

    “I feel honored to have played a role in supporting the Dor Hadash members the opportunity to apply their own values of tikkun olam to the situation in Israel/Palestine,” said Sumka, referring to the traditional Jewish imperative to repair the world. “Their resilience and their commitment to justice for all, whether in the U.S. or Israel/Palestine, is an inspiration.”

    The Shleimut trip began in the middle of 11 days of wrenching testimony in Pittsburgh from survivors of the attack, relatives of victims and first responders. One trip member had testified at the trial just before flying to Israel to come on the trip, but declined to speak to JTA at the congregation’s request.

    Dor Hadash member Rich Weinberg said the congregation “is not overly involved right now” in the proceedings because the synagogue opposes giving the shooter the death penalty — a sentence the prosecution is pursuing. On June 16, the defendant was found guilty on all counts, and the sentencing phase of the trial began this week.

    “We made our appeal to the Justice Department,” said Weinberg, who chairs Dor Hadash’s social action committee. “And they moved in a different direction.”

    In the nearly five years since it occurred, the Pittsburgh shooting has become a tragic reference point for discussing antisemitism in the United States. But on the trip, Weinberg connected the shooting with another attack on a house of worship — the 1994 shooting at the Cave of the Patriarchs in Hebron, in which an American-born Israeli settler killed 29 Muslims at prayer. 

    Weinberg was dismayed, he said, when the group visited that shooter’s gravestone and read an inscription on the monument saying he died “with clean hands and a pure heart” — especially because Pittsburgh Jews make an effort to avoid saying the name of the man who committed the 2018 attack.

    “It was shocking to come to the burial site of Goldstein and observe that he’s venerated as a Jewish martyr,” Weinberg said, referencing the Hebron shooter, whose burial site is treated as a pilgrimage site by a small minority of Jewish extremists. 

    The trip included a group from T’chiyah, a Detroit-area congregation that, like Dor Hadash, is Reconstructionist. Sumka, who lives in Belgium, hopes synagogues that go on Shleimut’s tour will go on to form relationships that, in the past, synagogues have pursued with Jewish Israelis, such as forming a sister-city relationship with a Palestinian community or inviting Palestinians to speak at an event. 

    Rabbi Alana Alpert of T’chiyah said that Dor Hadash’s participation in the trip makes her feel “very hopeful” for the American Jewish community.

    She added that by going on the trip, Dor Hadash is “doubling down on their commitment to the kinds of justice work that made them a target in the first place.”


    He’s lived in a Cape Cod dune shack for nearly 80 years. Now this 94-year-old artist faces eviction

    By Eli Masket, CNN
     Tue June 27, 2023

    Salvatore Del DeoRomolo Del Deo
    CNN —

    Salvatore Del Deo is a 94-year-old artist and Korean War Veteran who has made a dune shack in Provincetown, Massachusetts, his part-time home for the past 77 years.

    “Frenchie’s Shack,” named for Del Deo’s friend who built the rustic dune dwelling in 1942, is where the nonagenarian has spent part of the year since 1946, according to his son, and it’s where he thought he would spend the rest of his life.


    Those plans might change.

    Salvatore received an eviction notice from the National Park Service in March. The land the shack sits on became federal property in the 1960s, and arrangements made with Jeanne “Frenchie” Chanel, the shack’s original owner, have since expired, according to the park service.

    “Mr. Del Deo has been occupying the property without a permit since the passing of the individual who held a life estate for use of that dune shack. We have worked with Mr. Del Deo to grant him additional time to make necessary arrangements to vacate the dune shack,” the National Park Service said in a statement.


    Frenchie's ShackTatianna Del Deo

    The eviction notice came as a shock to the Del Deo family, said Romolo Del Deo, Salvatore’s son. “I responded to the park and explained to them that this was first of all horrible policy and secondly an error,” Romolo told CNN in a phone interview. He says Chanel willed the property to his family years ago.

    Salvatore’s dune shack is one of more than a dozen such small dwellings on the Cape Cod National Seashore, which has a long and storied history as a home for activists and artists, said Romolo.

    Salvatore has deep ties within Provincetown, including his founding of two local restaurants, Sal’s Place and Ciro & Sal’s, and his late wife was active in preserving the historic shacks.

    Salvatore was originally ordered to vacate the property in 30 days. But with the help of family friend Michela Murphy, whose family now owns Sal’s Place, the Del Deos were able to extend the eviction notice by 60 days, until June 27, Murphy said.
    Dune shacks for lease

    The eviction notice came shortly before the National Park Service announced a leasing program for eight other dune shacks.

    The park service has opened those eight historic properties to 10-year lease proposals, according to their website, and moved to make them available to new prospective occupants – a plan that has earned criticism from some locals. Lease proposals can be submitted through July 3, according to the National Park Service announcement.

    “Federal regulation requires that the lessee pays, at minimum, fair market value rent,” the park service website says.

    The shack occupied by Salvatore was not part of the eight shacks offered up to the public for lease by the park service, which frustrated his son.

    “Our shack was not even on the list of properties that we could bid on presently,” said Romolo. But the property is likely to be offered for lease by park service in the future.

    “What the park service seemed to be doing was attempting a kind of coup d’état,” said Romolo. “They were going to uproot the oldest continuous family living on the dunes and disconnect them from the community, and then later on evict everybody else.”

    Frenchie's ShackTatianna Del Deo

    In the 1960s, the land that makes up the Cape Cod National Seashore became federal property. The tenants were granted a variety of lifetime leases, according to the park service, which now owns 18 shacks.

    “When the land became federal property in the 1960s, tenants of the shacks were granted a variety of lifetime estates, either through the current occupant’s lifetime or the lifetime of their children,” the park service said in a statement.

    One of these tenants was Frenchie Chanel. According to Romolo, she attempted to pass ownership of the dune shack to the Del Deo family upon her death in 1983. The transfer of the property to the Del Deo family has not been acknowledged by the park service, Romolo said.

    In a use plan for the historic dune shacks published by the park service in 2011, the Chanel shack is listed with a “Reservation” that extends through the “life of daughter.”

    Romolo said the shack was passed to one of Chanel’s daughters, who left Provincetown more than a decade ago and recently passed away, likely prompting the park service to question the shack’s occupancy.

    The remaining members of the Chanel family have no issue with Salvatore’s occupancy of the shack, Romolo says.
    A long history on the dunes

    Many of the shacks date back decades before the dunes became part of Cape Cod National Seashore.

    Salvatore has spent part of nearly 80 consecutive years on what is now the Cape Cod National Seashore, except for his military service in Korea and during colder months, when the shacks become essentially uninhabitable.

    Salvatore and Josephine maintained the shack over the years, and at one point even rebuilt it after a severe storm.

    Frenchie's Shack interior.Tatianna Del Deo

    “In the 1970s, the original shack that Frenchie built was nearly destroyed, so we built, essentially, a superstructure, and rebuilt the entire shack,” said Romolo. Park service documents make note of the Del Deo rebuild in 1976.

    Josephine, who died in 2016, is known locally for her efforts in maintaining the shacks and establishing the seashore as a park.

    At one point, the dune shacks were under threat of being destroyed by the government, but Josephine, along with other activists, helped to get them registered as historic places so they would not be demolished, Romolo said.

    When the park service issued the eviction notice, Romolo said his family felt “betrayed.”
    Organizing against eviction

    Michela Murphy, the Del Deo family friend, started an online petition to halt the eviction, which now has over 10,000 signatures.

    “He is going to be 95 in August. Giving him a lifetime lease is not a huge commitment from the park service,” Murphy told CNN in a phone interview.

    Romolo said he was surprised by the amount of support his family has received. “It’s not like this is my circle of friends,” said Romolo.

    US Rep. Bill Keating shared a letter on social media requesting that Salvatore be allowed to maintain his residence in the shack. Massachusetts Sen. Edward Markey and Sen. Elizabeth Warren were listed as co-signers.

    “Even where the transfer of a lifetime lease to another party may not be possible, we respectfully request that the National Park Service consider all available options to legally allow Mr. Del Deo to reside in Frenchie’s Shack,” said the letter.

    Protesters gathered near the shacks on June 15, the day that the park service scheduled for prospective tenants to visit the properties, though Salvatore’s shack was not up for lease. According to Murphy, due to high demand, the visits had to be spread out over eight days.

    Salvatore Del Deo

    Murphy said that the shacks had been portrayed “like a vacation rental,” which she believes is inaccurate.

    “They didn’t mention that there have been families that have been living here for generations and maintaining it,” said Murphy. “The only reason that these shacks were able to stand against the sand for so many years is because these people stood for them.”

    Romolo believes that the leasing program is misguided and that even well-intentioned wealthy lessees would not be able to successfully maintain their shacks in the harsh winters or connect to the community.

    “This is a piece of American history and culture,” said Romolo.

    The Del Deo family would be willing to negotiate, said Romolo, and would be willing to pay annual fees, so long as the family is allowed to retain the shack.

    “Nobody’s committed a crime, nobody’s violated anything, we’re just doing what we’ve always done before the park existed,” Romolo said.

    The Del Deo family will host a sit-in at the shack from 10 a.m. to 6 p.m. ET Tuesday, the day of the eviction deadline.

    “Let him live out his days there,” said Murphy.

    How Big Is the Cyber Insurance Market? Can It Keep Growing?
    Tuesday, June 27, 2023

    The cyber insurance market may be small, new, and volatile, but it could also become an important form of economic security. In fact, the Biden administration appears to be counting on that. Cybersecurity strategy could be improved with a better understanding of the basic characteristics of the cyber insurance market, particularly its size, the size of the cyber reinsurance market on which it depends, where future risk capital could come from, and at what price. Publicly available data on the size and reach of the cyber insurance and reinsurance, or re/insurance, market is thin and often dated. Views on how much premium is written or coverage is outstanding often have to be cobbled together from disparate sources, with subsequent projections built on a shaky foundation.

    This piece seeks to provide a better starting point for such analysis. Using a mix of formal and informal research methods—hardly ideal but utterly practical—I’ve pulled together industry-wide estimates for cyber re/insurance premiums and coverage outstanding, as well as a view on historical growth. Further, given the strategic role that the insurance-linked securities (ILS) market could play in bringing breadth and depth to the cyber re/insurance market, I’ve included a few thoughts on the scope of cyber ILS so far, as well as how that market could continue its growth trajectory.

    Sources and Methods


    It’s notoriously difficult to form a comprehensive and accurate view of the global cyber insurance market. At best, publicly available data reports tend to focus on the overall U.S. market, which may represent only 55 to 60 percent of the cyber insurance industry worldwide, according to both formal interviews and private discussions. While the data afforded by the likes of A.M. Best and the National Association of Insurance Commissioners tends to be the best available, it still leaves some nontrivial gaps. Company reports can range from pure propaganda to the high-quality research often produced by the Swiss Re Institute and Munich Re NatCatSERVICE. Again, such reports are helpful but still offer only a partial view.

    While the following view of the cyber re/insurance market size and composition is hardly perfect, it aims to advance our collective understanding of the market as it stands today and where it could go tomorrow—while also offering something more than the “anecdata” currently shared by word of mouth. The methods used to compile the data below are mixed, beginning with a review of publicly available sources, as described above, to provide a foundation for the private sources of information gathered. This foundation was supported by interviews with seven cyber insurance executives, 10 cyber reinsurance executives, and 10 ILS managers on a wide range of cyber re/insurance market dynamics. The formal research and interviews focusing on market size and composition are supplemented by informal conversations with re/insurance and ILS market players.

    The results below consist of both point estimates and ranges. In an inexact exercise, the latter can help frame the probable, and the included point estimates can be supported sufficiently based on the underlying conversations or publicly available sources. This piece is an attempt to document the side conversations that occur in any market environment and present them in a manner in which they can help with further analysis, cyber insurance market growth, and even improved cybersecurity, given the role of insurance in economic security and the stated reliance on the private sector in the latest U.S. National Cybersecurity Strategy.


    (Ecole polytechnique, https://www.flickr.com/photos/117994717@N06/40466246635/; CC BY-SA 2.0, https://creativecommons.org/licenses/by-sa/2.0/legalcode

    Global Cyber Insurance Premiums and Limit Outstanding


    Global cyber market premiums tend to be easier to ascertain in retrospect, and time adds at least a bit of certainty. As a result, recent estimates are most likely to defy consensus, with those for 2023 being the most volatile by nature. The year is still in progress, and market conditions could influence the final result. Conversations with the market players and experts suggest that global cyber insurance premiums could end this year at up to $15 billion. Recent rapid rate increases, however, have slowed—which isn’t a surprise—meaning that a more modest outcome of around $13 billion is more realistic.

    For 2022, it’s also fairly difficult to estimate because it’s so recent, but global cyber insurance premiums range from Swiss Re’s $10 billion to Munich Re’s $11.9 billion to as much as $14 billion. Several private sources put the 2022 estimate at around $10-12 billion. These numbers also square with independently calculated estimates of worldwide reinsurance premiums (more on this below). Even at the low end of the 2022 range, global cyber premiums clearly climbed sharply from the 2021 Swiss Re estimate of $8 billion, itself up from only $5.5 billion in 2020.

    The high rate of market concentration may contribute to some of the volatility of industry estimates. Despite the high rate of premium growth recently, the cyber insurance market remains highly concentrated. The five largest insurers account for as much as a third of the worldwide total, according to estimates gathered from formal interviews, in conjunction with the market size estimates above. Market share could vary from the range above, but the point nonetheless remains. Further, focus on cyber insurance premiums masks the fact that revenue growth does not mean an increase in protection for end insureds. In fact, premiums have grown far faster than the protection offered for cyber risks.

    The amount of cyber insurance limit outstanding is even harder to estimate than premiums. Informal private conversations yield a 2022 range of around $360-500 billion. The estimates at the higher end come from sources who believe that the market shares of the largest players are relatively low, while the lower estimates reflect a belief that market concentration is quite high. A working estimate of $400-450 billion seems to be the right fit, as it would reflect an average rate on line (ROL)—or cost of insurance—ranging from around two and a half percent to a little more than three percent, which seems indicative of the recent rate increases that led to such significant premium growth. There’s still room for people to disagree reasonably, but the range of the potential 2022 premium suggests a limit outstanding of at least close to $400 billion and pretty far down from $500 billion.

    Global Cyber Reinsurance Premiums and Limit Outstanding

    Historically, estimating the global reinsurance premium in the cyber market was as easy as halving the insurance estimate. A Swiss Re report put the rate at which insurers cede cyber to reinsurers at 45 to 50 percent, although some private sources say it could be as high as 55 percent. That would put the 2022 global reinsurance premium at $7 billion, 2021 at close to $5 billion, and 2020 at a bit under $3 billion. The year to come is more difficult to forecast, as some structural factors have changed the amount of reinsurance that insurers may consume.

    Until this year, insurers have largely relied on quota share structures, through which reinsurers basically share proportionately in the business written by the insurers they cover. On the one hand, some non-proportional reinsurance covers made it into the market, but they represented a small slice of overall cyber reinsurance risk transfer. So-called event covers, which provide reinsurance protection for insurers when there is a single catastrophic cyber loss event, on the other hand, were few and far between. In 2023, however, event covers have begun to gain some traction. Because they consume less capital than quota shares, the move to more event cover may appear to cost the cyber reinsurance sector some growth.

    The increased use of non-proportional reinsurance—including event covers—makes it difficult to estimate cyber reinsurance premiums by halving cyber insurance premiums, particularly because some larger cyber insurers have integrated more event covers into their risk transfer strategies. If we take 2022’s cyber insurance premium at $10-14 billion, then the worldwide cyber reinsurance premium would be something less than $5.5-7 billion, and probably closer to $5-5.5 billion. What’s interesting, though, is that nominally smaller cyber reinsurance growth could enable disproportionately faster cyber insurance market growth, since insurers would be able to keep more of their attritional business, hedge out the catastrophic exposure, and use their capital more efficiently.

    Market concentration appears to have been alleviated to some extent by the entry of new reinsurers into the sector. The five largest reinsurers accounted for more than 80 percent of worldwide premiums in 2021, and for 2022, that concentration fell to 50-60 percent. The sharp drop is implied by two underlying factors evident especially in the formal interviews. One is the entry of new participants, or reinsurers, into the market. Admittedly, this did little to alleviate the previously high rate of market concentration directly. The second factor is that smaller and mid-sized reinsurers not only saw rate increases from their quota share business but also saw those rate increases as a reason to lean further into the cyber reinsurance market, a move further encouraged by the post-ransomware lull (at least in terms of insured losses, if not actual attacks) beginning in the second half of 2021. However, even these expansionary forces have been dulled by access to additional capital.

    Several reinsurers revealed in their formal interviews that they would need access to retrocession (reinsurance for reinsurance companies) to support further growth. While some reinsurers already write retrocession—“retro,” as it’s known colloquially—they don’t offer much capacity. Further, many prospective buyers would like to see retro come from outside the reinsurance sector as a way to protect against systemic risk. Even with the changes over the past year, cyber reinsurance remains highly concentrated. A few changes in business strategy could cause a meaningful chunk of that risk capital to be diverted to other classes of business. That’s why reinsurers need access to a separate source of retro capital, and that points directly to the ILS market.

    The Nascent Cyber ILS Market

    ILS refers to a segment of the global re/insurance industry that uses capacity from the capital markets. As insurers lay off risk to reinsurers, both insurers and reinsurers may package up risk into a variety of formats to secure protection from these outside sources of capital. Initially seen as an outlet for retro in the property-catastrophe space, the ILS market has evolved to take on additional risks, although natural catastrophe is still the bulk of what the sector covers. In fact, the role that the ILS market initially played in “peak peril” risk transfer—the most difficult systemic risks, such as a hurricane in Florida or a typhoon in Japan—is seen as a model for how it could operate in the cyber re/insurance market, where peak perils could be viewed as cloud outage and self-replicating malware.

    The cyber re/insurance market has sought ILS involvement for years, even before my early efforts to help develop the Property Claim Services (PCS) Global Cyber industry loss index in 2017. In fact, the PCS team (which I led at the time) began working on the loss index to support the forms of alternative risk transfer that ILS managers would want to consume. It has taken time for protection buyers to understand some of the quirks of ILS risk transfer—from collateral management to minimum ROLs—with early trading consisting of small, bespoke transactions with little opportunity to scale. But that’s changing—quickly.

    The cyber ILS market has achieved a limit outstanding of as much as $1 billion, roughly a 100 percent year-over-year increase. The fact that it is still a hair less than one percent of the $104.9 billion in ILS capital currently under management suggests not just that cyber ILS is still small but also that it has plenty of room for growth. The fact that cyber is a diversifying risk for ILS managers focused heavily on natural catastrophes could make it an increasingly attractive class of business for some.

    Further cyber re/insurance market maturation will be necessary to enable access to more ILS capital. Interviews suggest that further improvements to event definition will help, as well as the issuance of liquid instruments (with the recent cyber catastrophe bond being a good first step). Finally, cyber risk and event modeling, according to most interview participants, need to continue to advance in order to more fully meet the needs of ILS managers. The good news is that the market is generally headed in the right direction and simply needs to continue to refine what it already does.

    How to Raise the Stakes Responsibly

    Cyber re/insurance market growth is certainly important in its own right. It’s possible to claim dismissively—or even derisively—that an expanded cyber re/insurance market is simply a way to drive more profit into the insurance industry. Of course it is. And there’s nothing wrong with that. Successful businesses are good. Successful insurers continue to provide financial protection to society. That’s a worthy enough aim in itself. But the stakes are far higher than commercial success. Cyber re/insurance has emerged as a key pillar for cybersecurity, just as re/insurance has long been a largely unsung contributor to economic security. As the most recent U.S. National Cybersecurity Strategy reveals, cyber re/insurance plays a direct role in economic security and could play a larger one as time passes.

    The quantification of the current state of the global cyber re/insurance market explored here—as well as the support offered by the ILS sector—provides a crucial reference point for further strategic planning, be it corporate or state security. Much of the analysis produced has had to rely on tenuous assumptions, optimistic projections, and, frankly, guesswork. It’s tough to operate under those circumstances. With at least a preliminary view of the size and composition of the global cyber re/insurance market, the analysts, scholars, and other stakeholders looking at the cyber re/insurance market hopefully will be able to apply their talent to greater effect.

    Tom Johansmeyer
    Tom Johansmeyer is a Ph.D. candidate in international conflict analysis at the University of Kent, Canterbury, where he is focused on the cyber insurance protection gap as an economic security problem. He was recently the head of PCS at data/analytics firm Verisk, where he led the development of risk and loss quantification tools for cyber, political violence, and other natural and man-made events.