Australia’s terrorism risk rating has risen following the Sydney cafe siege, according to a new report.

This year’s Aon Terrorism and Political Violence Map, compiled with global consultancy the Risk Advisory Group, moves the rating from negligible to low, and adds a terrorism peril.

“This peril was removed [last year] due to an absence of major plots over the preceding 12 months, but we have reintroduced it following the Sydney cafe attack in late 2014, an increase in the official threat level, reports of foiled plots and Australian nationals radicalising and joining or supporting the group Islamic State (IS),” the report says.

“Official concerns over terrorism in Australia appear centred around the threat returnees who have fought with IS in Iraq and Syria might pose, but also individuals inspired by the group’s call for attacks to operate locally and independently using whatever weapons are available.”

The global situation is improving, with 21 countries given a reduced risk rating and 13 increased.

However, Western nations have been hit hard by rivalry between extremist groups Islamic State and Al-Qaeda. Nine Western economies (Australia, Belgium, Canada, Denmark, Estonia, France, Germany, Ireland and Norway) now have higher risk ratings.

“Competition between various extremist groups is encouraging adherents to undertake attacks in the West,” the report says. “While property risks remain high, casualty exposures to less sophisticated attacks have increased markedly in the past 12 months.

“In light of this, companies should review their casualty and property coverage for terrorist attacks and potential property losses from any security forces’ response.”

See ANALYSIS