Terrorism Insurance: Implementation of the Terrorism Risk Insurance Act of 2002
- Topics:
- Insurance,
- Terrorism Insurance
- Tags:
- Business Operations,
- Terrorism Insurance,
- Terrorism,
- Risk,
- Insurance Company,
- Insurance,
- Homeland Security,
- Government,
- General Accounting Office,
- Corporate Insurance,
- ...
- Source:
- U.S. General Accounting Office
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Overview: The terrorist attacks of September 11, 2001, drastically changed the way insurers viewed the risk of terrorism. An industry that had considered the risk of terrorism so low that it did not identify or price terrorism risk separate from property and casualty coverage will pay approximately $40 billion for losses arising from September 11, according to industry experts. In the aftermath, GAO reported that insurance coverage was disappearing for terrorist events, particularly for large businesses and those perceived to be at some risk. As contracts between reinsurers and insurers came up for renewal, reinsurers excluded terrorism from coverage. Without reinsurance, insurers retained greater levels of risks than they could responsibly carry, and their reaction was to exclude these risks from commercial policies as they were renewed.
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Format: PDF | Size: 463KB | Date: Apr 2004 | Pages: 39
