Policy Watch: Challenges for Terrorism Risk Insurance in the United States

Topics:
Insurance
Tags:
Business Operations,
Corporate Insurance,
Government,
Homeland Security,
Insurance,
Terrorism
Source:
National Bureau of Economic Research

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Overview: This paper examines the role that insurance has played in dealing with terrorism before and after September 11, 2001, by focusing on the distinctive challenges associated with terrorism as a catastrophic risk. The Terrorism Risk Insurance Act of 2002 (TRIA) was passed by the U.S. Congress in November 2002, establishing a national terrorism insurance program that provides up to $100 billion commercial coverage with a specific but temporary risk-sharing arrangement between the federal government and insurers. As input into this process, the paper examines several alternatives and scenarios, and discusses their potential to create a sustainable terrorism insurance program in the Unites States.

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Format: PDF | Size: 149KB | Date: Oct 2004 | Pages: 21

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